SIDBI 4E Scheme – MSME Loans
SIDBI launched the 4E Intervention on the occasion of “World Environment Day” on June 5, 2014 to provide technical backstopping and support MSME clients for reducing their power & fuel cost.
End to End Energy Efficiency or 4E Scheme aims to promote Energy Efficiency Investments in MSME’s. Under this scheme SME’s can avail Loan for their Investments towards Implementing Energy Efficiency Measures, New Technology Up gradation in Machinery which conserves energy, Investment towards Roof Top Solar Etc. The MSMEs will be assisted with Technical Consultancy and Financial Facilitation at better rate of Interest (below 10%).
Benefits of 4E Scheme
- The 4E programme helps MSMEs improve bottom line through energy savings (10-25%), by availing the services of Technical Consultants at a reasonable cost with assurance on the quality of services and assured savings.
- A back-to-back financing product support is provided with the help of the World Bank to provide loans for EE projects to MSMEs. The term loans are provided at concessional interest rates and on softer terms.
- Normal Detailed Energy Audit, Implementation support and M&V charges ranges from Rs. 1.5 Lakhs to 2.5 Lakhs. ISTSL offers all services at very high concessional rates for all these services.
- 30,000/- plus applicable taxes for micro & small category units (i.e. Rs. 35,400/- inclusive of taxes. Considering GST @18%)
- 45,000/- plus applicable taxes for medium category units (i.e. Rs.53,100/- inclusive of taxes. Considering GST @18%)
- Areas covered under detailed energy audit are all the energy consuming equipment. Recommendations are based on the retrofits in the existing system / new equipment installation / Technology up gradation.
- ISTSL provides its consultancy services for the implementation of all Energy Conservation Measures mentioned in the Detailed Project Report after the Energy Audit conducted by ISTSL for 3 months from the date of Energy Audit.
- ISTSL also provides its consultancy services in the field of resource efficiency, water audit and renewable energy like solar power generation /solar thermal energy.
- ISTSL ensures the quality & performance of the audit completely.
- Financing for the above projects can be considered by SIDBI under its existing schemes.
- The Energy Audit is done by empaneled energy audit firm.
The Eligible borrowers for this Scheme are Micro, Small or Medium Enterprises in the Manufacturing or Service Sector. In order to avail Loan under this Scheme, the Plant has to submit Detailed Energy Audit (DEA) & Detailed Project Report (DPR). The Audits and DPR will be done through India SME Services Technology Limited (ISTSL) a Joint Venture of SIDBI.
- Filled in application form
- Filled in questionnaire
- Advance money from the unit as per the application form
- DIC / SSI / MSME registration certificate / Udyog Aadhaar certificate (Any one latest document)
- GST Details
Loan Amount and Tenure
- Up-to 90% of the Project cost with minimum loan amount of Rs. 10 lakh and maximum loan amount not to exceed Rs. 150 lakh
- Eligible loan amount should not exceed one-fifth of the total turn-over of the applicant unit.
- The repayment period including initial moratorium period of up-to 6 months, shall not be more than 36 months for loans up-to Rs. 100 lakh and 60 months for loans beyond Rs. 100 lakh.
Interest rate will be in the range of 8.10 – 9.9%. The Repayment period is 36 Months for Loan up to Rs. 100 Lakhs and 60 Months for Loan Up to Rs. 150 Lakhs including initial moratorium period up to 6 months.
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