DIRECT CREDIT SCHEMES

SSIs Service sector units with project cost upto Rs.25 crore New or existing SSI units. SSI unit graduating to medium scale, and Service sector units with an overall project cost not exceeding Rs.25 crore.

Medium Sector Enterprises (MSE) and Service sector units with project cost above Rs.25 crore and upto Rs.250 crore. New or existing enterprises, & medium sector

Eligibile Borrowers

Service sector units with an overall project cost above Rs.25 crore and upto Rs.250 crore with Bank's assistance not exceeding 50 crore.

Constitution

The unit should generally be a The unit should generally be a private limited / private limited / public limited public limited company company. However, partnership firms, sole proprietorship concerns and Societies and Trusts would also be considered on a case to case basis. Term loan and other forms of assistance such as Working Capital Term Loan and bills discounting (on selective basis). In Rupee or foreign currency Term loan and other forms of assistance such as Working Capital Term Loan, suppliers bills discounting. Investment products such as debentures, optionally convertible cumulative preference shares, zero coupon bonds, etc. In Rupee or foreign currency

Nature of assistance

Currency of loan

COMPOSITE LOAN SCHEME (CLS)

Purpose Assistance for equipment and/or working capital as also for work sheds Eligible Borrowers Artisans, village and cottage industries and small industries in tiny sector Norms Loan Limit - Not to exceed Rs. 25.00 lakh

SINGLE WINDOW SCHEME (SWS)

Purpose To provide both term loan for fixed assets and loan for working capital through a single agency. The total working capital requirement of such units inclusive of all fund based facilities are to be taken into account for determining the working capital facility eligible for refinance Eligible Borrowers Entrepreneurs setting up new projects in MSE / tiny sector, new promoters acquiring unencumbered fixed assets of existing MSE concerns from PLIs and also existing well run units undertaking modernisation / technology upgradation and potentially viable sick units undertaking rehabilitation scheme Norms Scheme operated through SFCs / twin function IDCs / scheduled commercial banks / eligible state cooperative banks / scheduled urban co-operative banks Loan Limit - Not to exceed Rs.200.00 lakh Rehabilitation Of Sick Industrial Units

Purpose

For providing assistance for rehabilitation of potentially viable sick units

Eligible Borrowers Potentially viable MSE units including units in cottage and village industries and in tiny sector, conforming to definition of sick MSE unit as prescribed in guidelines of Reserve Bank of India. The assistance is meant for sick MSE units for which proper rehabilitation packages have been drawn up. Units eligible for rehabilitation assistance should be capable of being restored to normal health within a reasonable time.

EXISTING
DIRECT CREDIT SCHEMES

1. SSIs 2. Service sector units with project cost upto Rs.25 crore 1.Medium Sector Enterprises (MSE) and 2.Service sector units with project cost above Rs.25 crore and upto Rs.250 crore.

Eligibile Borrowers

I] New or existing SSI units. ii] SSI unit graduating to medium scale, and iii] Service sector units with an overall project cost not exceeding Rs.25 crore.

i] New or existing medium sector enterprises, and ii] Service sector units with an overall project cost above Rs.25 crore and upto Rs.250 crore with Bank's assistance not exceeding Rs. 50 crore.

Constitution

The unit should generally be a private limited / public limited company. However, partnership firms, sole The unit should generally be a private proprietorship concerns and Societies limited / public limited company and Trusts would also be considered on a case to case basis. Term loan and other forms of assistance such as Working Capital Term Loan, suppliers' & purchasers' bills discounting. Investment products such as debentures, optionally convertible cumulative preference shares, zero coupon bonds, etc. In Rupee or foreign currency

Nature of assistance

Term loan and other forms of assistance such as Working Capital Term Loan and bills discounting (on selective basis).

Currency of loan

In Rupee or foreign currency

DIRECT CREDIT SCHEMES

Purpose Assistance for purposes, such as Assistance for purposes, such as

Setting up of a new SSI unit/ service sector unit. Expansion / Diversification/ modernisation/ technology upgradation/ quality certification. Any other activity considered relevant to the project. For undertaking various marketing related activities Acquisition of additional machinery / equipment Meeting working capital requirements including gap

Setting up of a new MSE unit/ service sector unit. Expansion / Diversification/ modernisation/ technology upgradation/ quality certification. Any other activity considered relevant to the project. For undertaking various marketing related activities. Acquisition of additional machinery / equipment.


in MPBF or margin on selective basis. Any other activity as per guidelines (having linkages and benefits accruing to SSI sector from the proposed assistance). All activities covered under erstwhile marketing assistance scheme for SSIs.

Meeting working capital requirements including gap in MPBF or margin on selective basis. Any other activity as per guidelines (having linkages and benefits accruing to MSE sector from the proposed assistance). All activities covered under erstwhile marketing assistance scheme for SSIs.

Minimum loan amount

Generally Rs.50 lakh for setting up new unit and Rs.25 lakh for other purposes. In respect of well run existing SSI units, the minimum loan could be Rs. 10 lakh.

Generally Rs.100 lakh for setting up new unit and Rs.50 lakh for other purposes.

Rate of interest

As applicable from time to time.

As applicable from time to time.

Desirable Norms and parameters Debt Equity Ratio Generally not exceeding 2:1 for the company as a whole. Generally not exceeding 2:1 for the company as a whole. New projects - 33%, lower contribution [upto 25%] could be accepted in respect of existing well performing companies. Others 25% (minimum) Minimum 6 months to maximum 810 years for term loan (including moratorium of not exceeding up to 18 months). Upto 1% of the term loan sanctioned at the time of issue of LoI.

New projects - 33%, lower Minimum Promoter's contribution [upto 25%] could be contribution accepted in respect of existing well (wherever performing companies / firms. applicable) Others - 25% (minimum) Minimum 6 months to maximum 810 years for term loan (including Period of loan / limit moratorium of not exceeding 18 months). Upfront fee [non refundable] 1% of the term loan sanctioned at the time of issue of LoI.

DIRECT DISCOUNTING SCHEME - EQUIPMENT (DDS-E)

Purpose

To enable manufacturers - sellers in SSI sector / service sector including construction / selling agents to offer deferred payment terms for credit sales and realise sale proceeds by discounting bills of exchange / promissory notes arising out of such sales. Eligibile Borrowers Limits are sanctioned by SIDBI to well established concerns / corporate bodies buying machinery / capital equipment from SSI units. Limits are also sanctioned to well established SSI manufacturers sellers Norms Usance of Bills Minimum transaction value - Rs.1,00,000 Normally 3-5 years

PURPOSE
To meet the expenses on consultancy, documentation, audit, certification fee, equipment and calibrating instruments required for obtaining ISO 9000 certification

Eligible Borrowers Existing industrial concerns in the SSI sector having a good record of past performance and sound financial position. The objective is to promote quality / management systems in SSI units with a view to strengthening their marketing and export capabilities. .

Norms Loan Limit need Debt equity ratio not more than 2:1 for the Repayment - maximum 5 years including an initial moratorium upto 12 months based. borrowing

concern.

WOMEN

MARKETING FUND FOR WOMEN (MFW)

Objective The assistance under the Fund is available to women entrepreneurs and organisations involved in marketing of products manufactured by women entrepreneurs to increase their reach, both in domestic and international markets

Eligible Borrowers

SSI units managed by women entrepreneurs. Marketing related service providers Organisations / units in the corporate / co-operative / NGO sectors which are providing support services like internet, trade related information, advertising, marketing research, warehousing, common testing centres, etc. to enterprises owned and managed by women. Marketing related service providers Organisations / units in the corporate / co-operative / NGO sectors which are providing support services like internet, trade related information, advertising, marketing research, warehousing, common testing centres, etc. to enterprises owned and managed by women.

Consortia Organisations / Associations / Women Groups / Marketing Consortia that have an exclusive marketing mandate and have, as their vendor base, a wide range of small and tiny units owned and managed by women entrepreneurs. While the terms and conditions for sanction of assistance would be flexible, they would essentially depend upon the soundness of the management, track record of performance and viability of future operations.

Development Assistance Besides providing financial assistance as mentioned above, SIDBI could also consider, on a selective basis, developmental assistance by way of soft loans/grants for organising group activities and programmes such as trade fairs, exhibitions, buyer-seller meets, seminars, workshops, training programmes, etc. to promote marketing of products manufactured by women entrepreneurs.

SMALL MEDIUM

Definitions of Micro, Small & Medium Enterprises

In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes: (a) Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951). The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery. (b) Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment. The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:

Manufacturing Sector
Enterprises Investment in plant & machinery Does not exceed twenty five lakh rupees

Micro

Enterprises Small Enterprises

Medium Enterprises More than twenty five lakh rupees but does not exceed five crore rupees More than five crore rupees but does not exceed ten crore rupees

Service Sector
Enterprises Investment in equipments Does not exceed ten lakh rupees:

Micro Enterprises
Small Enterprises Medium Enterprises

More than ten lakh rupees but does not exceed two crore rupees More than two crore rupees but does not exceed five core rupees