Service sector assistanceWho is it forExisting Small and Medium Service Sector Enterprises in need of Loan/Capital for GrowthExisting promoters with experience in the similar activity for setting up new projects.Your current area of operation could be in any of the Service Sector Businesses listed below: Hospitality & Tourism related activities (including Health Tourism) Health care (Diagnostic & Pathology centres / Clinics, Hospitals, etc.) IT and IT enabled services Business Process Outsourcing (BPO), Knowledge Process (KPO) and other knowledge based activities Advertisement and Promotion Services Infrastructure Support Services including activities relating to Telecom Transport Services Logistics Supply chain management Warehousing and cold storage Retail outlets Hotels below 5 star category, especially budget hotels Restaurants Modern health care facilities/ Health clinics/ Hospitals withfocus on relatively smaller hospitals Franchisees / Franchisors Rent a car operators Scientific or technical consultancy, testing and analysisagency, event management for industry, promotion ofindustrial growth. Tourism related activities Auto workshops / Repairs/ Auto Dealers Telecommunication Services Business Process Outsourcing (BPO), Knowledge ProcessOutsourcing (KPO) and other knowledge based activities likecall centres, technical help desks, medical transcriptions, bio-informatics, contract research, etc. Setting up of mobile/radio frequency transmission/receivertowers, cabling, network installation, systems integration,service centres, dealerships, etc. Setting up of service stations (petrol and gas filling stations,auto workshops, etc.), health and fitness centres, eventsmanagement, and establishment of design houses/studios.(The list is only indicative and not exhaustive. We shall be pleased to offer assistance to Service Sector Businesses not listed above.)Your NeedsYou would like to have adequate capital/loan to meet the growth aspirations of your business.You would like to make investments in Marketing, Brand Building, Creation of Distribution Network, Technical Know-how, R&D, Software Purchase, etc but the lenders you typically approach are not comfortable with such intangible assets.You would like to raise finance on the strength of your business and backing of your cash flows rather than Asset Cover/ Collateral Security. You would also like to have a longer initial moratorium on principal instalments to ensure greater chances of success for your ventures.(or so that you have adequate time to stabilize the operations of your venture)Scheme DetailsTerm loan and. Investment products such as Sub-debt, Equity, convertible debentures, optionally convertible cumulative preference shares, zero coupon bonds, etc.Key BenefitsBridge the gap in means of finance for scaling up/ expansion/ modernization projects.Access long term structured assistance especially for investments in intangible assetsLeverage Equity / Sub Debt Assistance from SIDBI for raising higher debt funds.Avoid complexities of Enterprise Valuation, Exit Issues etc associated with Equity Investments.EligibilityService sector project within the ambit of Section 2 (h) of SIDBI Act.Maximum project cost upto Rs 75 crore with term loan from SIDBI not exceeding Rs 50 crore.Where investment in equipment is not more than Rs 5 crore, project cost upto Rs 250 crore.The unit should generally be a private limited / public limited company. However, partnership firms, sole proprietorship concerns and Societies and Trusts would also be considered on a case to case basis.

Loan Facilitation & Syndication ServiceWhat is Loan Facilitation & Syndication Service? Under this initiative, SIDBI facilitates Bank loans for new as well as existing manufacturing and service sector units. SIDBIs initiative in partnership with Banks, Rating Agencies (RAs) and Accredited Consultants (ACs). Its a transparent, structured mechanism for timely consideration of loan applications.Why Is It Needed? To generate complete structured applications alongwith necessary documents as are needed by Banks for sanctioning of loans. Independent Validation by ACs of the information furnished by MSMEs in the loan applications provides a second check thereby enhancing the reliability of furnished information and acts as an additional comfort to the banks in handling the loan applications. Rating (not mandatory) of proposals by Rating Agencies, as and when required, provides an independent opinion and helps the bankers for considering applications expeditiously. The initiative would reduce delays and is expected to enhance flow of assistance to MSME sector.Benefits to MSME EntrepreneursBank Loan Process Made EasierImproved Acceptance of the loan proposals by banksHow does it Work? SIDBI has empanelled Accredited Consultants (ACs) who will prepare the Basic Information Memorandum (BIM) for the MSME entrepreneurs based on the information and requirements indicated by the MSMEs. It is not only a loan proposal but more than that. BIM will capture all information required by the Banks and the Rating Agencies, if needed, BIMs prepared by ACs would be submitted to SIDBI by ACs with the approval of MSME entrepreneur. If required, SIDBI may get the proposal rated by RBI approved Rating Agencies. SIDBI provides Equity / Quasi- Equity for Growth Oriented existing units, Finance for Service Sector Units, and provides credit to MSMEs for Energy Efficient and Cleaner Production Processes. In all other cases, the application would be forwarded to Public Sector Banks with whom SIDBI has entered into a MoU for the purpose of Loans. SIDBI, in essence, will handhold the Entrepreneur through all stages of loan processing.Services provided by Accredited Consultants Guide new / existing entrepreneurs regarding availability of schemes of SIDBI / commercial banks Inform MSMEs of Government subsidies / benefits Provide borrowers with debt counselling Prepare Basic Information Memorandum (BIM)Facilitate response to queries raised by banks etc.

Financing Schemes for Sustainable Development - Energy Efficiency and Cleaner ProductionWho is it for?Micro, Small and Medium Enterprises (MSMEs) planning to invest in: Energy saving investments in plant and machinery / production processes in order to reduce carbon footprint and enhance Profitability. Cleaner Production and emission reduction measures, waste management and Common Effluent Treatment Plant (CETP) facilities.Energy Service Companies (ESCOs)providing solutions for EE / CP / renewable energyOriginal Equipment Manufacturers (OEMs)which manufacture energy efficient / cleaner production / green machinery / equipment for MSMEsObjective: Financial products to enable climate and environmental friendly investments to: Promote energy saving in Micro, Small and Medium Enterprises(MSMEs) in India, by providing financial assistance to MSMEs, directly by SIDBI as well as through refinance to Primary Lending Institutions (PLIs) and Non Banking Financial Companies (NBFCs), Reduce the emission of greenhouse gases, especially Carbon Dioxide (CO2) to contribute towards climate change mitigation and achieve a reduction or avoidance of emissions and pollution through the introduction of financial products Support MSMEs towards development, up-scaling, demonstration and commercialization of innovative technology based project.Needs Addressed Acquisition, installation, remodeling and upgrading of existing energy saving equipment thus improving energy efficiency. Installation of building envelopes, equipments, heating systems, lighting, and such other equipments electrical power/motors in compliance with energy performance standard provided in the Energy Conservation Building Code (ECBC). Alternative/Renewable Energy sources such as Wind Energy (Windmills), Solar Energy (Photovoltaic & Thermal), Micro Hydro, Biomass/Bagasse (Gasifier/Cogeneration), Municipal Solid Waste based power generation, etc. (on-grid / off-grid; captive/ non-captive, etc.) and equipments which can reduce Green House Emission. Investments in Effluent and Waste Treatment / Recycling and such other activity which promote cleaner technology Investment in activities related to Energy Efficiency or Clean technologies such as energy audit / environment compliance audit / pollution control & management consultancy services, ratings, certification, etc. and Energy Service Companies (ESCOs).Key Benefits Attractive Rates of Interest on Energy Saving Projects Reduced Energy Costs & Enhanced Profits Recovery of valuable by-products; Improved quality of the finished product Waste reduction / minimization / Pollution control Participating in Sustainable Growth Eligible for Government of India subsidy like TEQUP, CLCSS, TUFS, etc.Financing Schemes1) JICA-SIDBI Financing SchemeDetailed Scheme: JICA -SIDBI financing scheme for MSME projects Phase II(click here)Energy Saving Equipment List (Version-7.6)click hereEligibility Criteriafor the Units/Industries: New / existing MSME units, as per the definition of the MSMED Act, shall be eligible for assistance under the scheme. Existing units should have satisfactory track record of past performance and sound financial position and should not be in default to institutions/banks. Sectors such as the arms industry, narcotics industry or any unlawful businesses are categorized as non eligible business and shall not be eligible for finance under this Scheme. Similarly, such projects which may result in larger negative social and environmental impact would also not be eligible under the Line of Credit. Renewable sources or technologies such as Wind Energy (Windmills), Solar Energy (Photovoltaic), Micro Hydro, Biomass/Bagasse (Gasifier/Cogeneration), Municipal Solid Waste based power generation where a minimum of 50% of the power generated using alternative energy sources may be utilized directly by the MSME units themselves2) KfW-SIDBI Financing Scheme(a) KfW-Energy Efficiency SchemeDetailed scheme:KfW Financing EE measures in MSMEs and Cluster(click here)List of Energy Efficiency measures(click here)Eligibility Criteriafor the Units/industries Existing MSME units, as per the definition of the MSMED Act, shall be eligible for assistance under the scheme. Investments shall result in significant reductions of greenhouse gas emissions i.e. CO2 emissions reduction of at least 3 tonne of CO2 per year per 1 Lakh Rupees of loan(b) KfW-Cleaner Production Scheme Detailed scheme:KfW Financing CP measures in MSMEs and Cluster(click here)List of Cleaner production Measures(click here)Eligibility Criteriafor the Units/industries Existing MSME units, as per the definition of the MSMED Act, shall be eligible for assistance under the scheme. Investment towards improvements in waste treatment handling, raw material productivity, waste intensity and reduction in air pollution, water pollution, soil contamination, etc are eligible. Greenfield investments are not eligible for investments under this scheme except investments in Central Effluent Treatment Plants (CETP), Waste Treatment, Storage and Disposal Facilities (TSDF) and waste recycling plants.(c) KfW Innovation Finance ProgrammeStrengthening the MSMEs active on the supply side of clean technologies and which are engaged in development and adaptation, demonstration, deployment and commercialization of innovative clean technologies in select sectors (products, processes and services) The assistance,could be either in the form of secured term loan or subordinated debt / quasi equity / equity.A technology can be considered as "innovative" for this purpose if (a) it is not yet widely available in the respective region. (ii) It has significant impact in terms of environment and climate protection. (iii) A significant part of the new products, processes or services is developed or adapted by the beneficiary.Eligibility criteria for unitsNew as well as existing well performing MSME units would be eligible for assistance under the scheme.Detailed scheme:KfW Innovation Finance Programme3) Sustainable finance Scheme (SFS)Sustainable development projects which have significant impact towards energy efficiency / cleaner production but not covered under the international / bilateral lines of credit as above shall be assisted under SFS.Guidelines as applicable under DCS.

World Bank GEF Project - Financing Energy Efficiency at MSMEsObjectiveThe objective of the India-MSME Energy Efficiency Project is to improve efficiency and reduce GHG emissions through commercial investments in energy efficiency goods and services in target Small and Medium Enterprise clusters.Global Environment Facility (GEF) and the World Bank through SIDBI and BEE are implementing a new initiative on financing Energy Efficiency (EE) in MSME Clusters in India to improve EE and reduce Green House Gas (GHG) emissions from MSMEs utilizing increased commercial financing for EE. The Grant agreement was signed on September 13, 2010 and effectuation of this grant took place on October 28, 2010. Total GEF Funding under the project available to SIDBI is 9.05 Million USD to be utilized over a period of four years. In addition to the grant to SIDBI , GEF has also provided a grant of USD 2.25 Million to the Bureau of Energy Efficiency (BEE) for implementation of energy efficiency at MSMEs in India.. A Project Management Unit in SIDBI has been setup at New Delhi to channelize the grant to the targeted beneficiaries.Under the project, SIDBI will focus largely on five energy intensive clusters viz. foundry cluster at Kolhapur, Forging at Pune, Limekilns at Tirunelveli, Chemical at Ankleshwar and mixed at Faridabad) in India through provision of assistance for completion of Energy Audits, preparation of DPRs and support in mobilization of financing from the Indian local banks to ensure that the identified EE measures are implemented. SIDBI will also provide broad support to BEE for energy efficiency implementation in additional 25 clusters where the initiatives are being undertaken by them. The project will focus on four main activities viz. as 1) Activities to build capacity and awareness for EE in MSMEs, 2) Activities to increase investments in EE in MSMEs, 3) Programme knowledge management, and 4) Project management.-Project BriefProcurement-Contract Award Notice - CS 1 to 5 (SIDBI)-Contract Award Notice - CS 13 (SIDBI)-Contract Award Notice - CS 14 (SIDBI)-Contract Award Notice - CS 15 (SIDBI)-Contract Award Notice - CS 20 & 21 (SIDBI)-Contract Award Notice - CS 17,18 & 19 (SIDBI)-Contract Award Notice CS-09&10 (SIDBI)-Contract Award Notice CS-060716 (SIDBI)-Contract Award Notice - CS-11 (SIDBI)Financial Management-IUFR Summary - March 2012-IUFR Summary - June 2012-IUFR Summary - Sept 2012-IUFR Summary - Dec 2012-IUFR Summary - March 2013-IUFR Summary - June 2013-IUFR Summary - Sept 2013Project Outcome-Cluster Profile Report - Pune (Forging) Cluster-Cluster Profile Report - Kolhapur ( Foundry) Cluster-Cluster Profile Report - Faridabad (Mixed) Cluster-Cluster Profile Report - Ankleshwar (Chemical) Cluster-Cluster Profile Report - Tirunelveli (Limekiln) Cluster-Cluster Profile Report_Kolhapur Foundry_Marathi-Cluster Profile Report_Pune Forging_Marathi-Cluster Profile Report_Tirunelveli Limekiln_Tamil-Cluster Profile Report_Ankleshwar Chemicals_Gujrati-Cluster Profile Report_Faridabad Mixed_HindiPartial Risk Sharing Facility (PRSF) Project-PRSF ERMF Cover Note-1-1 Report PRSF EMF 22 Apr 2014-1-2 Appendix PRSF EMF 22 Apr 2014 part 1-1-2 Appendix PRSF EMF 22 Apr 2014 part 2-1-2 Appendix PRSF EMF 22 Apr 2014 part 3-1-2 Appendix PRSF EMF 22 Apr 2014 part 4-1-2 Appendix PRSF EMF 22 Apr 2014 part 5-1-2 Appendix PRSF EMF 22 Apr 2014 part 6

Growth capital and equity assistanceWho is it forExisting Small and Medium Businesses in need of Capital for GrowthYour Needs You would like to have adequate capital to meet the growth aspirations of your business, but without diluting your ownership. You would like to make investments in Marketing, Brand Building, Creation of Distribution Network, Technical Know-how, R&D, Software Purchase, etc but the lenders you typically approach are not comfortable with such intangible assets. You would like to raise finance on the strength of your business and backing of your cash flows rather than Asset Cover/ Collateral Security. You would also like to have a longer initial moratorium on principal instalments to ensure greater chances of success for your ventures.Scheme DetailsGrowth Capital and Equity Assistance Scheme provides assistance in form of Mezzanine/ Convertible Instruments, Subordinated debt and Equity (in deserving cases).This quasi assistance has a higher moratorium on repayment and a flexible structuring.Key Benefits Bridge the gap in means of finance for scaling up/ expansion/ modernization projects. Access long term structured assistance especially for investments in intangible assets Leverage Equity / Sub Debt Assistance from SIDBI for raising higher debt funds. Avoid complexities of Enterprise Valuation, Exit Issues etc associated with Equity Investments.Security (in case of Debt based Instruments) Charge on available assets of the beneficiary unit and assets created out of SIDBI assistance Personal guarantee of the promoters CGTMSE Coverage, wherever applicable.Eligibility An MSME as per the definition of Government of India (MSMED Act) and SIDBIs existing customers (meeting internal rating criteria)orUnits with past 3 years of profitability and 2 years of satisfactory banking credit track record (meeting internal credit rating criteria)Acceptable external rating from CRISIL, ICRA, D&B, SMERA etc would be desirable.

Receivable Finance SchemeWe realise that Financial Health of a Small and Medium Business (MSME) depends significantly upon the speed with which their receivables are realised.We have, therefore, devised a scheme to to mitigate the receivables problem of suppliers belonging to Micro, Small and Medium Enterprises (MSMEs) and improve their cash flow / liquidity.The scheme helps the MSMEs inQuicker realization of receivables.Discounting at competitive rates.Efficient Cash Management.How does it work?SIDBI helps mitigate the problem of delayed payments to MSMEs in respect of their credit sales to large purchaser companies by offering them finance against bills of exchange / Invoices arising out of such sales.What is the Scope of Coverage?The scheme covers discounting of bills of exchange/invoices arising out of sale of indigenous components / parts / sub-assemblies /accessories /intermediates by an MSME unit. Services provided by an enterprise in the services sector (eligible service provider) to a Purchaser Company are also covered.Description of Transactions under the Schemei. Limits are sanctioned to: (a) Well-performing Large Corporates / Purchaser Companies with sound financials for covering their purchases of components / sub-assemblies / parts / accessoriesand services obtained from MSMEs(b) MSME sellers for early realization of dues from large Corporates by discounting the billsii. MSME suppliers draw Bills of Exchange on Purchaser companies against supplies made/ services provided by them and the Bills of Exchange are accepted by the Purchaser companies. iii. Wherever Bill of Exchange is not furnished by the large Corporates, based on acceptance on the Invoices and proof of delivery challan/ Goods Received Note, discounting is made as per agreed terms between the Corporates and SIDBI.iv. On a selective basis, in respect of large Corporates, with good repayment track record with SIDBI, a platform has been created with NSE viz. NTREES where, E-discounting is allowed. v. These Bills/ Invoices are discounted by SIDBI within the sanctioned limit and payment effected (after deducting the applicable discount / retaining the retention margin) directly by way of RTGS / NEFT to the working capital account of the MSME supplier/ service provider.vi. On the due date, the Purchaser makes payment to SIDBI either through RTGS or by cheque.vii. The limits are reviewed / renewed every year.Who is Eligible for this scheme?1. Either the Seller or the Purchaser needs to Qualify as SME (manufacturing/service sector unit.)2. SMEs engaged in manufacturing / undertaking job works relating to sale of Components / Parts / Sub-assemblies / Accessories/Intermediates /Services etc. to Medium and Large Scale Units;3. Large Corporates procuring raw materials from MSMEs.

Flexible Assistance For Capital ExpenditureWho is it ForA Greenfield Project or An Existing MSME planning to Modernise, Upgrade Technology, Diversify by making large Investments in land/ buildingYour NeedsYou wish to Modernise and create World Class manufacturing Facilities by making large Investments in land/ buildingYou are in one of the businesses where a substantial part of your investment would be in land and buildings with longer economic life.You wish that different components of your project cost have repayment schedules that take into account: Nature of Investment Economic Life Expected Cash FlowsYou need Flexibility to plan for Capital Expenditure for Immovable and other Fixed Assets jointly or separatelyYou wish that Interest Rate for each component is based on their TenureMost importantly, you do wish to have longer repayment schedule for longer tenure investment (for example: land and building)In other words you need a scheme that takes the shape of your needs.Scheme DetailsEligibilityNew or Existing Small and Medium Sized businesses (MSMEs) Satisfactory Performance and No default to Banks (Existing Units)Quantum of AssistanceNeed Based. . The assistance can be jointly or separately for each component.Repayment PeriodImmovable Assets: Need based. Not more than 10 years including moratoriumOther Fixed Assets: Need based. Not more than 7 years including moratoriumInterest RateBased on Rating and Tenure of each component of loan

Finance for Upgradation / ModernisationSIDBI Understands your need to adopt modern technological processes and undertake capacity expansion as per your business needs.SIDBI has been identified as a Nodal Agency for the releasing of assistance, monitoring, interface and coordination with Financial Institutions, Banks and the Government.We help New as well as Existing Small and Medium Enterprises benefit from the following Schemes: Technology Upgradation Fund Scheme for The Textile Industries (TUFS) Credit Linked Capital Subsidy Scheme (CLCSS) Integrated Development of Leather Sector Scheme (IDLSS) FPTUFS Scheme for Food Processing Industries Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises

TIFAC- SIDBI Revolving Fund for Technology InnovationProvide financial assistance to MSMEs towards development, up scaling, demonstration and commercialization of innovative technology based projects.The assistance is given in the form of early stage debt funding on softer terms for development, demonstration and commercialization of new innovations in emerging technological areas, un-proven technologies, new products, process, etc. which have not been successfully commercialized so far.Maximum assistance is generally not more than `100 lakh per project.Interest rate would be as approved by the Project Approval Committee (PAC) (not be more than 5% p.a.).All the proposals for assistance under the Scheme shall undergo technical evaluation by TIFAC and financial viability by SIDBI. The assistance is approved by a Project Approval Committee (PAC) consisting of officials of SIDBI and TIFAC.