COGNIZANCE ON SIDBI FINANCE
SIDBI‘s primary role is promoting, growing to help MSME (Micro, Small and Medium Enterprise) sector financially. It helps them in obtaining the funds required for their growth. SIDBI provides various schemes and finance services to meet the requirements of a wide variety of businesses.

SIDBI was introduced to provide support to the MSME units. The unique advantage of SIDBI includes:
– lowest rate of interest
– lowest collateral security requirements
– All Central Government & State Government Subsidy benefits are eligible
– provide finance for setting up new project (i.e. Green Field projects) as well as
existing units for expansion
– provide term loan as well as working capital.
– maximum period of 7 years with a comfortable moratorium period and balloon repayment.

SCHEMES

1) SIDBI MACHINERY LOAN FOR PURCHASE OF MACHINERY 
This SIDBI Machinery loan is intended to provide a hundred percent financing loan facility for purchasing of any machinery required for operating their business.
ELIGIBILITY CRITERIA
To apply for this SIDBI Machinery loan, your business must have an operation for at least 3 years and have proper sales and profits in the past 2 years.
LOAN SIZE
The New to Bank (NTB) customers can get up to Rs. 1 crore whereas the SIDBI’s existing customers can avail loan up to Rs. 2 crores for purchasing equipment or machinery.
TENURE & MORATORIUM
The repayment period for this type of loan is 2 to 5 years, including a moratorium of 3-6 months.
INTEREST RATE
The interest rate of this SIDBI loan is 8.90 % per annum.

2) SIDBI PRATHAM SCHEME
This Scheme was launched to offer assistance to MSME’s based on a hybrid or alternate security model
The main aim of this Scheme is to provide term loan for the purchase of Plant and ancillary equipment’s MFA.
Eligibility
To apply for this loan, business units must be in 3 years operation and must be having a net profit during the operation of the last three years.
Loan Size
It is 100% on the total purchase of Plant and Machinery and MFA’s subject to the maximum loan amount of 3 Crores.

Rate of Interest
The interest rate of this SIDBI loan is 8.90% per annum.

3) SIDBI Term- Loan Assistance For Rooftop Solar PV Plants (STAR)
SIDBI has declared an appealing plan to help MSME (Micro Small and Medium Enterprises) lessen their capacity bills.
Eligibility
Any qualified unit can benefit this low loan cost term burden for building up solar-based force plants from limits 25 kWp to 500 kWp.
Loan Size
100% of the expenses of the hardware and the installation can be benefited under this Scheme.
TENURE & MORATORIUM
A moratorium of 3 to a half years can likewise be benefited with a most lavish residency five years, including the moratorium.
Rate of Interest
The interest rate is as low as 8.90% with an upper capping of 10.2%

Conclusion
Benefiting loans from SIDBI is simple, and recommendation from the consultant enables a transparent and hectic free process. SIDBI is an innovative way to maintain a balance between finance lenders and customers. SIDBI Loan for MSME is a substantial funding approach, which educates on business finance solution. If you are planning to SIDBI MSME loan in India, you are on the right page. We are into the business engaged since last 20 years in the field of Project Finance, MSME Loan, Working Capital, and Government Subsidy work in Ahmedabad, India