What is the scheme?
SIDBI has recognized self-sufciency with renewable energy as a critical area where an MSME can reduce its cost of power and be competitive. To assist units willing to replace existing grid power with solar power, SIDBI is offering financial assistance under STAR Scheme (SIDBI Term loan Assistance for Rooftop solar PV Plant).
How much funding can a unit expect under the Scheme?
The eligible unit can borrow up to ₹ 250 Lakhs under this scheme.
Which units are eligible under this scheme?
MSMEs with minimum existence of 4 years and preceding 2 years cash profit, willing to reduce power bill by installing rooftop solar plant with 25 KW to 500 KW capacity are eligible under this scheme. The power output should be lower than the existing power consumption from the grid. The assistance includes Solar Panels /Equipment with all accessories and Installation cost. Credit Guarantee also covers available for such finance.
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 a tenure up to 5 years including moratorium up to 6 months to eligible units.
What kind of collateral and margin is required?
15% to 25% of the financial assistance is needed to be provided as FD for this facility.