Green Loan

Green Finance Scheme:

Green Finance Scheme is structured financial activity (product) created to ensure a better environmental outcome through energy efficiency / cleaner production and other sustainable development projects.

To provide financial assistance and support for green projects in the MSME sector as aligned to nation's commitment to reduce Green House Gas (GHG) emissions

RESCOs, ESCOs, EPC companies and vendors or any MSME on either Supply or Demand side of Green Value Chain
MSMEs Executing projects or providing services, related to the activities eligible under the scheme to various government bodies on BOT, BOOT, BOOM, PPP etc
Any other entity acting as service provider or aggregator subject to MSME linkage is clearly established.

Concessional interest rate as per rating
Maximum repayment period up to 10 years
Quicker Sanction
Upto 100% financing
Upto 100% funding for smaller projects upto Rs.5 crores with Cash Collateral in the form of SIDBI FDR
Quick sanction and disbursement

Renewable Energy
Energy Efficient Building
Waste Management
Resource and Energy Efficiency Measure
Waste Water Treatments
Cleaner means of prodiction
Any new & innovative project with a potential for climate change mitgagtion or ensures Sustaianble Developements Goals (SDGs).

4E scheme:

For meeting the capital expenditure including for purchase of equipment/ machinery, installation, civil works, commissioning, etc. for implementing the Energy Efficiency measures required by the unit.

Revolving Fund Scheme for Financing End to End Energy Efficiency Investments in MSMEs (4E Financing Scheme)

Individual, Proprietorship Concern, Partnership Firm, Limited Liability,Partnership (LLP), Company, Society, Trust, Association of persons and any other legal entity as may be considered by SIDBI from time to time.

A. Detail Appraisal Mode - Funding with Promoter’s Contribution
MSME units in the manufacturing or services sector.
Applicant unit should be in operation for at least one year and should not be in default to any bank/FI.
The unit should have undergone the process of Detailed Energy Audit (DEA) through a technical agency / consultant having BEE certified Energy Auditors.
The unit should comply with the Environment & Social Management Framework.

B. Quick Dispensation Mode - 100% Funding with Cash Collateral [ SIDBI FD]:
MSME units in the manufacturing or services sector.
Existing units with at least 3 years operations.
The unit should have achieved cash profit in immediate past two years based on audited balance sheets.
Detailed Energy Audit would not be required in respect of projects involving purchase of energy efficient machines to the extent of at least 60% of the total project cost.
“Co-borrower concept” is also allowed.
Purchase and installation of rooftop solar PV plant for captive consumption shall also be allowed provided feasibility report is available. DISCOMs permission required.
The unit should comply with the Environment & Social Management Framework

Upto 90% of the Project cost with minimum loan amount of Rs.10 lakh
100% funding of the project shall also be allowed provided minimum cash collateral of 20% is provided in form of SIDBI FDR

Green Loans