SIDBI Make in India Loan for Enterprises (SMILE) was also launched by Jaitley. The Scheme is intended to take forward Government of India’s ‘Make in India’ campaign and help MSMEs take part in the campaign.
The focus will be on identified 25 sectors under ‘Make in India’ programme’ with emphasis on financing smaller enterprises within the MSME sector. The scheme is expected to benefit approximately 13,000 enterprises, with employment for nearly 2 lakh persons.
Objective
The objective of the Scheme is to provide soft loan, in the nature of quasi-equity and term loan on relatively soft terms to MSMEs to meet the required debt-equity ratio for establishment of an MSME as also for pursuing opportunities for growth for existing MSMEs.
Eligibility
- All MSMEs as per MSMED Act 2006.
- Emphasis on financing smaller enterprises within MSMEs and also new enterprises in manufacturing as well as service sectors
- Existing enterprises undertaking expansion / modernization / technology up-gradation / other projects for growing their business
- Loans extended under the scheme cannot be used for repayment of earlier loans.
- Focus on all the identified 25 sectors. In addition, to help MSMEs across other sectors, deserving proposals from any other sector can also be assisted on merits.
How to Apply:
For enquiries, please contact the nearest SIDBI office or tell us briefly about your business & requirements at www.sidbi.in (online enquiry)
Types of Assistance
Soft Loan – In the Nature of Quasi – Equity
Amount
- 10% of the project cost subject to maximum Rs.20 lakh
- 15% of the project cost subject to maximum Rs.30 lakh for enterprises promoted by SC / ST / Persons with disability / Women (controlling stake of at least 51%)
- Term Loan – On Relatively Soft Terms
Upfront Fee
0.50% of the loan amount
Rate of Interest
- First 3 years: 9.15% to 9.35% p.a. (fixed)
- From 4th year onwards: 11.70% – 12.70% p.a. – Based on Bank’s PLR / Internal Rating (rate can be both fixed and floating)
Repayment Period
Up-to 10 years inclusive of moratorium up-to 3 years.
Term Loan – On Relatively Soft Terms
Amount
- Minimum Rs.50 lakh for new enterprises
- Minimum Rs.25 lakh for existing enterprises
Rate of Interest
- First 3 years: 9.45% to 9.95% p.a. (fixed) – Based on Rating
- From 4th year onwards: 11.70% – 12.70% p.a. – Based on Bank’s PLR / Internal Rating
Term Loan
- 75% of Project Cost up-to Rs.100 lakh, and
- 2/3rd for the rest subject to promoters contribution and DER norms.
Security
- First charge over all assets created under the project
- Personal guarantee of the Promoter(s)
- Fixed Asset Coverage of at least 1.40 times including collateral security
Repayment Period
Up-to 10 years inclusive of moratorium up-to 3 years.
Fiscal Incentives
- For the general category, 10% of the project cost, subject to a maximum of INR 20 Lakh is provided as the loan amount
- 15% for the enterprises promoted by Scheduled Caste (SC) /Scheduled Tribe (ST) / Persons with Disabilities (PwD), and women, subject to a maximum of INR 30 Lakh
- Persons belonging to these categories must own a controlling stake (ie 51% or higher)
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