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.

Green Finance Scheme

  • 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.
  • Global competitiveness and brand recognition in the market
  • Better work environment
  • Better profitability by reduction in energy & environment related cost
  • Risk sharing facilities available for EE/Greener/ Cleaner Projects
  • 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).
  • For MSME - Maximum loan -Rs. 20 crores
  • Service provider or aggregator subjected to MSME linkage - Rs. 50 crores
  • REPO linked attractive RoI, concessional interest rate as per rating.
  • Maximum repayment period up to 10 years


Key points

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.
  • Automated loan processing
  • Seamless loan application journey
  • Immediate In-Principle offer
  • Upto 100% financing
  • Low processing fees
  • Quick sanction and disbursement
  • 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
  • REPO linked attractive RoI
  • Up to 60 months