Objective
To support MSMEs (both manufacturing & service
sectors) promoted by SC/ST entrepreneurs by way of term loan assistance (on
relatively softer terms) for the establishment of new/ greenfield units or for
expansion/ modernization/ other capital expenditure of the existing unit,
coupled with incentive structure.
However, generally, these types of schemes are
created to provide:
1. Financial Assistance: Low-interest loans, credit
guarantees, and easier access to credit facilities for SC/ST entrepreneurs.
2. Skill Development: Training and workshops for capacity
building, improving management practices, and enhancing industry-related
skills.
3. Infrastructure Support:
Assistance in availing of better infrastructure or machinery, thereby aiding in
quality improvement and competitiveness.
4. Market Access: Facilitating participation in
trade fairs, exhibitions, and buyer-seller meets to provide greater market
access to these enterprises.
5. Mentorship: Networking events and
platforms to connect budding entrepreneurs with experienced business leaders
for guidance.
6. Innovation and Technology:
Encouraging technology adoption and innovation to ensure that these businesses
remain relevant in the evolving market scenario.
Key Features and Incentives
- The financial incentive to
units maintaining satisfactory repayment track records with SIDBI
- 50% of the credit guarantee
fee to be borne by SIDBI
- Lower processing fees
- Nil prepayment charges
- Quick sanction and disbursement.
Eligibility
- MSMEs as per MSMED Act
- MSMEs promoted by SC/ST
entrepreneurs with a minimum 51% stake
- Standard Scheme Norms apply
(CIBIL / CMR, due diligence checks, etc.)
- Should not be in default to
any bank/FI.
Target Group
MSMEs promoted by SC/ST entrepreneurs with an
emphasis on smaller units/ new units under the manufacturing & service
sector.
Loan Amount
- Minimum – Rs. 25 lakh
- Maximum – Rs. 300 lakh
Interest Rate
Interest Rate – MCLR-based ROI as per internal
rating.