SAFE and SMILE, two SIDBI schemes that can help you raise money during Covid-19


Stepping up the struggle in opposition to Coronavirus and serving to Micro and Small Enterprises (MSEs) fight the prevailing scenario, Small Industries Development Bank of India (SIDBI) has launched monetary schemes for these concerned in manufacturing medical services or products associated to Covid-19.
Doling out loans of upto Rs 50 lakh, The Sidbi Assistance to Facilitate Emergency (SAFE) response in opposition to coronavirus scheme goals to supply help to such MSEs thereby making it simpler for them to facilitate duties that can help deal with the pandemic. It can additionally help them purchase gear for manufacturing or buy uncooked materials and consumables for manufacturing.

Target prospects and goal of the SAFE scheme:

  • MSEs who manufacture any product with a direct hyperlink to Covid-19 corresponding to hand sanitisers, gloves, masks, head gear, protecting robes, aprons, bodysuits, ventilators, goggles, labs and so on can search a mortgage of upto Rs 50 lakh.
  • Interest price of 5% each year will accrue for a most mortgage compensation time period of 5 years.
  • The loans are collateral free and will probably be permitted inside 48 hours of making use of and submitting the mandatory paperwork.
  • Open to SIDBI and non SIDBI prospects.
  • No processing price or prepayment expenses exist.

Another scheme, SAFE Plus, has additionally been launched which intends to satisfy further working capital necessities in opposition to authorities orders associated to preventing the virus.
Some of the salient options of the SAFE Plus scheme embody:

  • Open to all MSMEs, whether or not SIDBI’s current prospects or new ones with particular orders from Central / State authorities or authorities companies nominated for the aim.
  • Loan quantity is Rs 100 lakh and rate of interest is 5% each year.
  • The price of credit score assure is borne by SIDBI.
  • For non SIDBI prospects, the eligibility standards is to have money revenue in final 12 months’s stability sheet and account shouldn’t be in SMA 1/ 2 class.
  • Security within the case of non-SIDBI prospects will probably be escrow association or Power of Attorney in favour of SIDBI.

Higher mortgage quantity of Rs 200 lakh in SAFE:

  • Target prospects are all current MSMES eligible to be lined underneath the Special Policy Package introduced by the respective state authorities referring to Covid-19.
  • The eligible listing consists of all medical and allied merchandise within the provide chain.
  • The mortgage can be availed as time period mortgage (for gear) or working capital time period mortgage (for materials).
  • Rate of curiosity, eligibility and operational facets will stay the identical as underneath SAFE / SAFE Plus.

There’s quite a bit to cheer about SIDBI’s Smile scheme

SIDBI’s Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE) is a flagship scheme of the Small Industries Development Bank of India (SIDBI).
The goal of the scheme is to offer mushy loans, corresponding to quasi-equity and time period mortgage on comparatively mushy phrases to MSMEs to satisfy the required debt-equity ratio for the institution of an MSME as additionally for pursuing alternatives for progress for current MSMEs.

To assist the fund starved Indian MSME sector passing via a troublesome time lately, the uniquely designed scheme presents many advantages.

The main highlights of the scheme embody aggressive rates of interest, funding of half promoter contribution by the use of mushy loans, longer compensation interval and fast dispensation.

Who is eligible?

The scheme is open to SIDBI’s current and new prospects.

According to SIDBI, the emphasis of the scheme is on overlaying new enterprises within the manufacturing in addition to companies sector. Further, the main target whereas shortlisting companies are on financing smaller enterprises inside MSME.

Existing enterprises enterprise growth, to make the most of new rising alternatives, as additionally enterprise modernization, expertise upgradation or different tasks for rising their enterprise are additionally lined. Moreover, a deal with recognized 25 Make in India sectors can be there. Also, deserving proposals from another sector can even be assisted on a case by case foundation, relying on deserves.

What the scheme presents:

Under the scheme, a minimal Loan Size – Rs 10 lakh for gear financing and Rs 25 lakh for different functions are on provide. There can be an extended compensation interval as much as 10 years, together with moratorium of as much as 36 months. The different highlights of the scheme are as underneath:

  • Attractive rates of interest ranging from 8.36%* onwards (topic to vary)
  • Loans prolonged underneath the scheme can’t be used for compensation of earlier loans.
  • The scheme additionally asks for a minimal promoter contribution of 15% topic to most DER of three:1.

Helping MSMEs manufacturing merchandise/ offering companies to struggle Covid-19

SIDBI has come out with a particular financing window (underneath its current Smile Scheme) providing medium and long-dated loans underneath engaging charges. These loans are supplied for financing the healthcare sector together with hospitals, nursing dwelling, clinics, and so on. for his or her necessities associated to preventing coronavirus.

Under the schemes, loans are being prolonged at a low price of curiosity of 5% inside 48 hours.

How to use for the scheme

Interested MSMEs can instantly method SIDIBI or its zonal places of work.

Online Application Form for SMILE schemes

List of SIDBI Bank Branches

Helpline Email: [email protected]

Helpline Numbers: 8080345526, 9899994956, 9560579925

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