SEF Scheme

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What is the scheme?

The flagship SMILE scheme is extended for funding the acquisition of Plant & Machinery, by existing profitable enterprises looking for expansion. The funding can also be covered under Credit Guarantee up to ₹ 2 Crs.

How much funding can a unit expect under the Scheme?

The loan is disbursed as a Term Loan with a minimum of ₹ 10 Lakhs. This can be extended to any amount depending on the requirement only up to 75% of the cost of the project.

Which units are eligible under this scheme?

Enterprises in existence for 3 years with satisfactory cash profit for the last 2 years, and are looking for expansion, modernization, technology up-gradation through the acquisition of Plant & Machinery are eligible under this scheme. The unit with interest coverage of 1.50 times for the tenure of the loan with debt-equity of 3 is 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 ow of the unit. SIDBI offers extended tenure up to 6 years including moratorium up to 1 year to eligible units.

What kind of collateral and margin is required?

It is expected to cover the loan amount with 1.25 times of collateral. Proposals up to ₹ 2 Crs can be considered under Credit Guarantee. The Promoter’s margin is expected at 15% to 25%.