Last updated: December 17th, 2019 5:08 PM

SIDBI Fast Track Financing Scheme

Overview of the SIDBI Fast Track Financing Scheme under which loan is provided to MSMEs to meet various financial requirements. Under the scheme, businesses having an impeccable track record of repayment to SIDBI are identified and fast track financing is offered to meet various financial requirements. SIDBI or Small Industries Development Bank of India is the principal financial institution for the promotion, financing and development of industry in the small scale sector.

Purpose of Fast Track Finance Scheme

The SIDBI Fast Track Finance Scheme is designed to meet financial requirements of existing clients on a fast track basis for purposes such as acquisition of additional machinery, equipment, miscellaneous fixed assets, undertaking various marketing related activities, quality upgradation and modernisation measures, meeting working capital requirements including gap in maximum permissible bank financing or margin or any other purpose considered relevant.

Amount of Loan

Loan of Rs.10 lakhs to Rs.50 lakhs can be provided under the SIDBI Fast Track Finance Scheme. The amount of loan and the conditions of loan are determined on a case to case basis during assessment of the loan application. On sanction of the loan, the limit is fixed upto which withdrawal can be made by the borrower upto the limit and validity period. The limit would be valid for one year and can be reviewed for additional increase on a year to year basis.

Eligibility

To be eligible for the SIDBI Fast Track Financing Scheme, the business should be a private limited company or limited company. Partnership firms, proprietorship firms, Trusts and Societies can also be considered on a case to case basis. In addition to the above, the applicant must be an existing borrower of SIDBI having a default free track record and have a debt to equity ration not exceeding 2:1.

Loan Tenure

Loan provided under the Fast Track Financing Scheme are generally provided for a period of 3 years and is renewable annually.