Machinery Loan (EXPRESS and SPEED)
A programme by Small Industries Development Bank of India (SIDBI) (Small Industries Development Bank of India)
Two direct term loans from SIDBI for MSMEs buying plant and machinery, applied for online.
At a glance
| Best for | Operating MSMEs with at least three years of trading buying machinery or fixed assets |
|---|---|
| Stage | Early revenue – Growth |
| Duration | Repayment up to 60 months on EXPRESS, up to 84 months with a moratorium of up to 12 months on SPEED |
About Machinery Loan (EXPRESS and SPEED)
SIDBI lends for machinery directly, without a bank in between. EXPRESS is the quick route: it is assessed automatically from your GST returns, income tax returns, bank statements and CIBIL score, and gives an in-principle offer straight away. SPEED is the larger one, covering plant, machinery and miscellaneous fixed assets, and it allows second-hand or refurbished machines under standard guidelines.
What you get
- A term loan at an MCLR-linked rate, with security partly in the form of a fixed deposit
- On EXPRESS, an automated assessment and an immediate in-principle offer
- On SPEED, a longer repayment period with a moratorium
Who can apply
- EXPRESS: MSME units in operation for at least three years, with Udyam and GST registration, and no defaults to banks or financial institutions
- SPEED: MSMEs with at least three years of operation, cash profit in the last three financial years, and no defaults to banks or financial institutions
How selection works: this is a credit decision, not a cohort. EXPRESS is scored automatically from your filings and credit record; SPEED is appraised against your accounts and the asset being bought.
How to apply: use the Apply Now button on SIDBI's machinery loan page, which opens its online loan application, or go through a branch office.
Where to apply
Other SIDBI programmes
- 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.
- Green FinanceDirect term loans for MSMEs in the green value chain and for energy efficiency upgrades.
- 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)