SIDBI launches SAFE Scheme; To offer Loans up to Rs. 50 Lakh at 5% Interest Rate
Responsive to the need of the hour to fight Corona Virus from all fronts, Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of Micro and Small Enterprises (MSEs), has launched SAFE (SIDBI Assistance to Facilitate Emergency response against Corona Virus) scheme.
It is a financial assistance program for MSEs which are engaged in the manufacturing of products or offers services related to fighting the novel coronavirus, which has been declared a pandemic.
MSEs engaged in manufacturing of hand sanitizers, masks, gloves, head gear, body suits, shoe-covers, ventilators, goggles, testing labs etc. can avail loans up to Rs. 50 lakh at a fixed interest rate of 5 per cent for a maximum loan repayment tenure of 5 years.
These are collateral free loans and may be sanctioned within 48 hours of applying and submission of documents.
Shri Mohammad Mustafa, IAS, Chairman and Managing Director of SIDBI said, “Being proactively responsive to enterprise ecosystem has been our thrust under SIDBI Vision 2.0.
In a situation which the country is going through right now, we felt that there is a need to immediately support and encourage those MSEs which are helping the nation fight the menace. It is our salute and support to such enterprises to be assured that we are standing with them towards national cause.” Related: How to find the perfect business name
The complete details about this scheme are mentioned below:
TARGET CUSTOMERS: This scheme will help the customers who seek finance for the purchase of machinery at an attractive Rate of Interest.
ELIGIBILITY:
- New borrower to SIDBI: up to Rs 1 Crore
- Existing Borrower: up to Rs 2 Crore
- 2 years of cash profits or stable sales
- Note: Greenfield or rural are also allowed with co-borrower
COVERAGE:
- Machines purchased from identified OEMs
RATE OF INTEREST:
- 9.25 to 10% p.a. as per internal ratings
- Repayment period – 2-5 years
KEY ATTRACTIONS:
- 100% finance based on 25% FD
- Direct payment to OEM
- Attractive ROI
- No middlemen required
- Pvt. Lease also covered subject to conditions
QUICK SANCTION & DISBURSEMENT:
- Loan to get sanctioned within 3 days of submitting information Documents
- Disbursement within 4 days of sanction
In May, SIDBI reported a 28.22% increase in its net profit, amounting to Rs 519.36 Crore for the March quarter and stated to target more MSMEs and SMEs for financing. Related: 10 Unique Business Ideas to Inspire You in 2019
The special scheme will help MSEs to acquire equipment, plant and machinery, other assets including raw materials required for production or delivery of services.
It will also help meet additional emergencies to ramp-up supplies of these essential products. It will be digital interface and MSEs can apply for the loan through: https://onlineloanappl.sidbi.in/OnlineApplication/login.action
As a Development Financial Institution,SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative and inclusive approach.
Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly touched the lives of Micro and Small Enterprises (MSEs) through various credit and developmental engagements.
To know more, check out: https://www.sidbi.in
Source:- moglix and indianweb2
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