4E Financing Scheme
What is the scheme?
For implementing Energy Efficiency measures on an end to end basis, SIDBI has introduced Financing End to End Energy Efficiency Investments in MSME Scheme (popularly known as 4E Scheme). The financial assistance is provided for meeting the cost of capital expenditure for implementing the Energy Efficiency measures by an existing MSME unit.
How much funding can a unit expect under the Scheme?
Up to 90% of the Project cost with a minimum loan amount of ₹ 10 Lakh and maximum loan amount that does not exceed ₹ 150 Lakh.
Which units are eligible under this scheme?
Existing MSME units in the manufacturing or service sector with at least 3 years of operation with the last 2 years positive cash profit are eligible under this scheme. Other criteria being, the unit should undergo Detailed Energy Audit (DEA) through a technical agency/consultants having BEE certied Energy Auditors.
What are the loan tenure options?
The repayment tenure is offered for loan amount up to ₹ 50 Lakh is 3 years and 5 years for loan beyond ₹ 50 lakhs.
What kind of collateral and margin is required?
Adequate asset cover may be insisted for the finance. Credit Guarantee cover is also availed for such loan. 10% margin is required to be brought in by the Promoters.