SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE)

To facilitate the flow of credit to Small and medium-sized enterprises (SMEs) for developing existing entities, the Small Industrial Development Bank of India (SIDBI) has recently launched a new scheme SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE). Under this scheme, financial assistance is provided to the borrowers of SIDBI, for the purchase of equipment/land for the expansion of enterprises. In this article, we will look at the SIDBI - ARISE Scheme in detail.

The objective of the Scheme

The key objective of the SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE) scheme is to support new and existing SMEs for purchasing growth opportunities:
Financial assistance will be provided to Brownfield/existing entities for undertaking expansion/modernization/ capital expenditure in the same line of businesses.

Key Features of the Scheme

The ARISE scheme offers an attractive Return on Investment (ROI) and the loan will be sanctioned very quickly
Another feature of the scheme is the quicker sanction of the loan
The facility of Term Loan/ Foreign Currency Term Loan (FCTL) is available

Validity of the Scheme

The SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE) is valid up to March 31, 2022, for sanction.

Eligible Enterprises

Enterprises eligible under the SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE) is listed below:

Micro, Small & Medium Enterprises (MSME) setting up units in identified sectors under the production linked incentive scheme
The high growth/sunrise sector and other important sectors are eligible for the scheme.

Eligibility Criteria

The eligibility criteria for availing of the loan under the SIDBI -ARISE Scheme are listed as follows:

Brownfield/existing entities for undertaking expansion/modernization/ capital expenditure in the same line of businesses
To avail of the loan, the MSME units should have at least two years of operations with stable sales
Cash profits in the last audited financial results are needed for availing the benefit of the scheme
The promoters contribution should be a minimum of 25% to avail the financial assistance
Standard norms are applied (CIBIL/CMR, due diligence, etc.)

Quantum of Assistance

Under the SIDBI -ARISE Scheme, up to Rs.3 Crore are provided for the borrowers based on the fixed deposit of 25% a maximum. Financial assistance is provided in the form of a Term Loan.

Interest Rate

The interest rate for the loan under the SIDBI -ARISE Scheme is 5.50% to 6.80% per annum for the first year with a reset applicable thereafter as per the internal rating.

Repayment Period

SIDBI offers a repayment period of up to 7 years including a moratorium period of up to 2 years under the SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE) Documents Required The documents required for the SIDBI -ARISE scheme is explained in detail below:

Proforma Invoice of the Machinery (quotation)
KYC documents (as per Bank’s guidelines)
Statement of immovable properties of promoter/directors
Copy of MoA/Partnership deed/Trust Deed
Copy of consent to establish from PCB
Document showing Existing Power load
Application filed for additional power load required
Copy of rent/lease agreement
Details of Loans taken from other banks/FIs/NBFCs which are currently outstanding
Copy of Udyog Aadhar Memorandum (UAM)
Copy of GST Registration Certificate (for GST registered units)
Copy of sanction letters of other lenders for existing banking arrangement
Proof of Identity document
Proof of Address document

Application Procedure for SIDBI -ARISE Scheme The application procedure for SIDBI Assistance to Re-Energize Capital Investments by SMEs (ARISE) is explained in detail below:

The eligible MSME enterprise needs to approach the concerned branch for the loan.
The applicant has to apply along with the KYC Application Form and the entire set of supporting documents.
After verifying the details, the SIDBI will sanction the loan and the amount will be credited to the beneficiary’s accounts.

To know more about the scheme, kindly visit the official webpage of the Small Industries Development Bank of India (SIDBI)