SPEED Plus Scheme
What is the scheme?
SIDBI has come up with SPEED – Plus scheme for higher funding requirement to deserving MSME units for procurement of machinery. The broad profile of the MSME is kept unchanged from the SPEED scheme.
How much funding can a unit expect under the Scheme?
The loan is disbursed as Term Loan and can be offered up to ₹ 200 Lakhs to the first time borrower with SIDBI, whereas existing borrowers can avail the loan up to ₹ 300 Lakhs under SPEED scheme.
Which units are eligible under this scheme?
SME units having existence for more than 5 years with last 3 years cash profit and minimum TO of ₹ 5 Crs are eligible under this scheme. The units have to buy the equipment from approved OEMs with SIDBI. Purchase of used or second-hand machineries are not eligible for nancing under this scheme.
The unit with Interest coverage of 1.50 times for the tenure of the loan with debt-equity of 3 and Current Ratio of 1.25 are the basic financial parameters which are taken into consideration.
What are the loan tenure options?
Loan Tenure is dependent on Risk Prole and Project Implementation Schedule and cash flow of the unit. SIDBI offers extended tenure up to 5 years including moratorium up to 6 months to eligible units.
What kind of collateral and margin is required?
Proposals up to ₹ 2 Crs can be considered under Credit Guarantee without any collateral. New customer to SIDBI may need to provide FD of 20% to 30% of the loan amount, whereas existing customer the FD requirement may reduce to 15% to 25%.