Green Finance
A programme by Small Industries Development Bank of India (SIDBI) (Small Industries Development Bank of India)
Direct term loans for MSMEs in the green value chain and for energy efficiency upgrades.
At a glance
| Best for | MSMEs and service providers on either side of the green value chain, and MSMEs implementing energy efficiency measures |
|---|---|
| Stage | Early revenue – Growth |
| Duration | Green Finance Scheme repays over up to 10 years with a moratorium of up to 18 months; the 4E scheme over up to 84 months |
About Green Finance
Two of the four facilities on SIDBI's green finance page are loans you can apply for. The Green Finance Scheme is a rupee or foreign currency term loan for businesses in the green value chain. The End To End Energy Efficiency scheme funds the capital spending behind an efficiency upgrade.
The other two are not for you to apply to. The Electric Vehicle Risk Sharing Facility, run with Shell Foundation, and the municipal solid waste facility, run with the NAMA Facility and GIZ, are guarantees given to banks and NBFCs so that they will lend to MSMEs in those areas. They have no published eligibility criteria and no application form; the page asks lenders and MSMEs to write to SIDBI's green finance vertical instead.
What you get
- A term loan in rupees or foreign currency at an MCLR-linked rate
- Cover under risk sharing facilities such as CGTMSE where applicable
- On the 4E scheme, funding for equipment, installation, minor civil works and commissioning
Who can apply
- Green Finance Scheme: manufacturing and service providers including RESCOs, ESCOs, EPCs and vendors, and MSMEs on either the supply or demand side of the green value chain, working in energy efficiency, renewable energy, compressed bio gas, water and waste water management, solid waste management or e-mobility
- End To End Energy Efficiency: MSMEs in manufacturing or services with at least three years of operations and cash profits, which must establish the energy efficiency or emissions reduction and comply with SIDBI's environmental and social framework
How selection works: a credit appraisal, plus evidence of the efficiency or emissions benefit on the 4E scheme.
How to apply: use the Apply Now button on SIDBI's green finance page, which opens its online loan application.
Where to apply
Other SIDBI programmes
- Machinery Loan (EXPRESS and SPEED)Two direct term loans from SIDBI for MSMEs buying plant and machinery, applied for online.
- Project Funding (ARISE, Ubharte Sitaare and STHAPAN)Direct term loans for expansion, for export-oriented MSMEs and for setting up a new unit.
- Working Capital (Working Capital, SWIFT and STEP)Direct working capital facilities for MSMEs that do not already bank their working capital elsewhere.
- Fund of Funds for StartupsSIDBI invests in SEBI-registered venture funds, which then invest in startups — the fund applies, never the startup.
- PRAYAASAffordable credit for informal micro-entrepreneurs, delivered at their door by partner institutions rather than by SIDBI directly.
- Production Linked Incentive Scheme for Telecom and Networking ProductsA Department of Telecommunications incentive scheme; SIDBI is its project management agency and runs the application portal.
- Production Linked Incentive Scheme for PharmaceuticalsA Department of Pharmaceuticals incentive scheme; SIDBI is its project management agency and runs the application portal.
- Refinance and institutional financeSIDBI's largest channel: lending to banks, NBFCs and microfinance institutions so they can lend to MSMEs. Not something a business applies for.
Everything about Small Industries Development Bank of India (SIDBI)