Objective
To support MSMEs (both manufacturing & service sectors) promoted by SC/ST entrepreneurs by way of term loan assistance (on relatively softer terms) for the establishment of new/ greenfield units or for expansion/ modernization/ other capital expenditure of the existing unit, coupled with incentive structure.
However, generally, these types of schemes are created to provide:
- Financial Assistance: Low-interest loans, credit guarantees, and easier access to credit facilities for SC/ST entrepreneurs.
- Skill Development: Training and workshops for capacity building, improving management practices, and enhancing industry-related skills.
- Infrastructure Support: Assistance in availing of better infrastructure or machinery, thereby aiding in quality improvement and competitiveness.
- Market Access: Facilitating participation in trade fairs, exhibitions, and buyer-seller meets to provide greater market access to these enterprises.
- Mentorship: Networking events and platforms to connect budding entrepreneurs with experienced business leaders for guidance.
- Innovation and Technology: Encouraging technology adoption and innovation to ensure that these businesses remain relevant in the evolving market scenario.
Key Features and Incentives
- The financial incentive to units maintaining satisfactory repayment track records with SIDBI
- 50% of the credit guarantee fee to be borne by SIDBI
- Lower processing fees
- Nil prepayment charges
- Quick sanction and disbursement.
Eligibility
- MSMEs as per MSMED Act
- MSMEs promoted by SC/ST entrepreneurs with a minimum 51% stake
- Standard Scheme Norms apply (CIBIL / CMR, due diligence checks, etc.)
- Should not be in default to any bank/FI.
Target Group
MSMEs promoted by SC/ST entrepreneurs with an emphasis on smaller units/ new units under the manufacturing & service sector.
Loan Amount
- Minimum – Rs. 25 lakh
- Maximum – Rs. 300 lakh
Interest Rate
Interest Rate – MCLR-based ROI as per internal rating.
