SIDBI & CLCS Scheme

A. S. Ramayya, AGM,
SIDBI, Vizag
September 24, 2019
 SIDBI ESTABLISHMENT - Activities

Established on April 02, 1990 by an Act of Parliament

 Operated through its 15 regional offices and 84 branch offices all over
India.

 In AP we have our presence at Visakhapatnam and Vijayawada.

 Indirect Credit / Refinance

 Institutional Loan Products - Refinance to banks, SFCs, SIDCs

 Micro Credit

 Direct Assistance -Term Loans, Bills Discounting, Working Capital

 Non fund based Assistance viz BGs, LCs etc.

 MSMED ACT 2006
ENTERPRISE - DEFINITION

Manufacturing Service
(Ceiling on investment (Ceiling on investment
in Plant & Machinery) in Equipment)

Rs.25 lakh Micro Rs. 10 lakh

Rs.5 crore Small Rs.2 crore

Rs.10 crore Medium Rs.5 crore

SIDBI Schemes of Assistance
 SPEED
Parameter Norms

Objective To provide quick loan for purchase of equipment

Maximum amt Rs. 100 lakh
Eligibility Criteria  Existing units with at least 3 years of operation with
profitable track record.
 New units are also eligible which are promoted by
experienced entrepreneurs in the same field.
OEMs Machinery should be acquired from OEMs with whom SIDBI
has signed an MOU viz. Jyothi CNC, Milacron, ACE, BfW, HAAs,
Batliboi, HURCO etc.
Funding 100% of cost of machinery, no promoter contribution.
Security FD to be kept for 25% of the loan requirement
Interest Rate 9.25% to 10% p.a.
Repayment 2 to 5 years with 3 to 6 months moratorium
Charges 1% upfront fee plus GST [one time]
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 SPEED PLUS
Parameter Norms

Objective MSME units which are in operation for min 5 years or more on
profitable track record who wish to purchase high-tech
machinery from OEMs / Indian subsidiaries of such OEMs, where
the cost of machinery upto Rs.2 crore.
Maximum Loan Rs. 2 crore
Finance 100% of the cost of machine
Interest Rate 8.80 to 10 % p.a.
Coll Security 25 to 30% of loan as FD
Repayment period Upto 5 years including moratorium upto 6 months
Eligibility A The unit should have achieved cash profit in immediate past
Criteria three years based on audited balance sheets
C. The unit should have reported operating loss in immediate
past two years based on audited balance sheets
D. Minimum net sales (including job work charges, if any) of Rs.5
crore and no fall in sales as per latest audited balance sheet
E. Proposed machinery relates to same line of business. 6
 TULIP
Parameter Norms

Objective Top Up Loan for Immediate Purposes

Eligibility Criteria  Existing customers of SIDBI with minimum 1 year
satisfactory repayment track record.
 Past customers of SIDBI who have fully repaid their loans in
last one year are also eligible
Purpose  Purchase of machinery/ equipment
 Need based civil works/ renovation etc
 Margin Money for Working Capital against WC GAP
 To execute sudden bulk orders etc.
Rate of Interest 10 to 11% p.a.
Security Minimum 10% of loan amount as FD besides extension of
existing securities with SIDBI
Repayment 5 years of equal monthly instalments with 6 months of
period moratorium
Extent of finance 100% of project cost or 20% of net sales in the previous year or
Rs. 2 crore whichever is lower 7
 RETAIL TRADE FINANCE
Parameter Norms

Objective To provide medium to long term finance for capex/ WC to well

performing traders
Eligibility Criteria 3 years growth in turnover y-o-y, as per audited financial
statements located within 25 km from Visakhapatnam.

Purpose Capex, Working Capital/ additional working capital based on

WC Gap.
Interest Rate 10 to 11.50% p.a.

Security 25% of loan as FD & CGTMSE or sufficient immovable security

Repayment 36 to 60 months including moratorium of 3-6 months

Extent of finance Minimum Rs. 10 lakh - Maximum Rs. 50 lakh for retail traders
& Rs.1 cr to wholesale traders

Upfront fee 1% plus GST

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 STAR
Parameter Norms

Objective SIDBI TL assistance for Rooftop Solar PV Plants

Eligibility For Existing Customers of SIDBI :
Criteria Existing units with at least 2 years profitable operation and
satisfactory repayment track record in past two years
For first time customers to SIDBI :
Existing units with at least 4 years profitable operation and
satisfactory repayment track record with existing lenders
Purpose To acquire Solar Roof Top plants on its premises of 25 kW to
500 kW capacity
Interest Rate 9.10 to 10.20% p.a.
Collateral FD of 25% of loan amount & CGTMSE or
Security 60% of loan in the form of immovable security
Repayment 5 years of equal monthly instalments with 3-6 months of
period moratorium
Extent of finance 100% of project cost or 25% of net sales in the previous year or
Rs. 2.50 crore whichever is lower. Minimum loan amount is 9Rs.
10 lakh. T&C applicable.
 Receivable Finance Scheme
Parameter Norms

Objective To mitigate the delayed payments of MSMEs from larger

Companies
Minimum Limit Not below Rs.1 crore
How it oerates Under the Scheme, annual limits are sanctioned to Purchaser
Companies. Bills/ invoices arising out of sale of indigenous
components/ parts manufactured/ job-work done/ services
provided by MSMEs to Purchaser Companies are discounted
and paid to MSEs
Interest Rate Competitive - as per Internal rating of SIDBI
Asset coverage 1.25 [ i.e security of 125% of the limit sanctioned]
Usance period Upto 90 days
Eligibility Criteria 3 years growth in Turnover y-o-y, as per audited financial
statements of the previous 3 FYs.
Corporate entity with 3 years of net profits out of the last 4
years as per audited financial statements
 End to End Energy Efficiency (4E) Solutions

 4E (End-to-End Energy Efficiency) Solutions by SIDBI.

 4E would help the MSME unit to adopt energy efficient
practices by providing them handholding support.
 4E would include the following services:
 Detailed Energy Audit (DEA)
 Support for implementation of EEMs & other equipment
for quantifying actual savings.
 India SME Technology Services Ltd. (ISTSL), an
associate of SIDBI is implementing the 4E Initiative.

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 Secured Business Loan for MSMEs
Parameter Norms

Objective The objective is to provide fast dispensation of credit to MSMEs for

planned or unplanned requirements. The assistance is in the nature of
term loan for any business related expenditure on the strength of the
collateral security and repayment capacity based on current operations.

Eligibility Existing MSME units having net profits in 2 years out of last three years
with cash profits in all the three years
Min/Max Limit Rs.1 crore - Rs. 10 crore
Extent of finance 100% - No promoter contribution, longer repayment period
Purpose For any tangible or intangible business need such as capex, servicing
new orders, renovation of property/ assets, reimbursement against self
financed assets acquired in last one year, funding of intangibles, brand
building/ marketing, R&D, inorganic business growth, or any other bona
fide business need, etc.
Rate of Interest 10.25% to 12.25% p.a. based on the internal rating
Eligible amount 50% of market value of collateral security (open land / plot within
criteria municipal / urban limits, industrial property in industrial area, commercial
property in industrial area).
 Credit Linked Capital Subsidy [CLCS]
Parameter Norms

Objective Facilitate technology to MSEs through institutional finance for induction

of well established and proven technologies in the specific sub-sector/
products approved under the scheme.
Amount of 15% on institutional credit upto Rs. 100 lakh [subject to a cap of Rs. 15
Subsidy lakh] under certain identified sectors for acquisition of plant and
machinery.
Effective date Effective from April 1, 2017
Nodal SIDBI, NABARD, SBI, Canara Bank, BOB, PNB, BOI, Andhra Bank,
agencies TIICL, Corporation Bank and Indian Bank
Eligible  Existing and new enterprises having Micro and Small Enterprise
entities/ main status under any constitution having valid Udyog Adhar
features Memorandum.
 Units graduating from small to medium scale on account of sanction
of additional loan shall also be eligible
 A particular machinery eligible under one sector, may be considered
eligible for other sectors as well, if its requirement is justified from
technical angle and unless its eligibility is not restricted for that
particular sector.
 CLCS .. Contd.
Parameter Norms

Out of scope MSEs availing subsidy under CLCS shall not be eligible to avail any
other subsidy for technology upgradation from any other agency
Ineligible  The cost of tools, jigs, dies, moulds and spare parts and consumables
items  The cost of installation, R&D, pollution control and fire fighting
equipment, DG sets, extra transformers, installation cables, wiring,
bus bars, circuit breakers etc. cost of storage tanks for RM & FG and
cost of Transportation charges, technical know how charges.
 In case of imported machinery transportation and demurrage
 Conversion of rupee term loan into foreign currency loan, buyers
credit
 Loan availed less than 60% of the cost of machinery
Release of  Subsidy released by the Govt will be kept in the form of TDR of the
subsidy equivalent amount for a period of 3 years w.e.f. the date of approval
of the subsidy by the concerned PLI. The said TDR shall earn no
interest.
 After expiry of the prescribed retention period, PLI will liquidate the
TDR and credit the proceeds into the loan account of the beneficiary.
Forfeiture During the course of prescribed retention period, the unit becomes NPA,
 CLCS – for SC/STs.. Contd.

Parameter Norms

 Special Credit linked Capital Subsidy Scheme for SC/ST categories,

women entrepreneurs, additional 10% subsidy shall be provided.
 For the above purpose, replacement of existing machinery would also
be eligible.
Claim in phases
Phase-I For the period FY18 i.e. 01-04-17 to 31-03-18, the application for
subsidy should be made to DC, MSME on or before October 5, 2019.
Phase-II For the period FY19 i.e. 01-04-18 to 31-03-19, the application for
subsidy should be made to DC, MSME October 6, 2019 to November
20, 2019.
Phase-III For the period FY20 i.e. 01-04-17 to 31-03-18, the application for
subsidy should be made to DC, MSME December 1, 2019 to January
15, 2019.
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
3RD FLOOR, LIC NEW INVESTMENT BUILDING
THIKKANA ROAD, ALLIPURAM
VISAKHAPATNAM-530004

TEL .: 0891-2540303/ 2740303

ramayya@sidbi.in

THANK YOU