
SIDBI Assistance To Export Oriented MSMEs Under Ubharte Sitaare Programm
To facilitate the flow of credit to Export Oriented MSMEs, the Small Industrial Development Bank of India (SIDBI) has recently launched a scheme called SIDBI Assistance To Export Oriented MSMEs Under Ubharte Sitaare Programm. Under this Scheme, Financial Assistance is provided to borrowers of SIDBI for expansion, modernization, diversification, and technology/capacity up-gradation. The eligible MSMEs will be assisted with technical consultancy and financial facilitation at a better interest rate. The current article briefs the SIDBI’s new Scheme in detail. Get your IEC through IndiaFilingsNote on Ubharte Sitaare Programme
For the very first time, during Budget 2021, Finance Minister, Smt. Nirmala Sitharam announced the Ubharte Sitaare Programme (i.e., USP). As per the announcement, the program aims to eradicate the constraints faced by small and mid-sized companies in realizing their export ambitions. India Exim Bank will anchor the said Programme along with SIDBI. Acting further, an Alternative Investment Fund, launched ‘Ubharte Sitaare Fund,’ was successfully registered with the Securities and Exchange Board of India (SEBI) in July 2021. Here, India Exim Bank and SIDBI have contributed INR 40 Crore each. The total corpus of the fund is INR 250 Crore.The Essential Feature of the Programme
The essential feature of the Programme is as follows:- The companies having adequate technology, product or process will first be identified.
- The identified company will be supported via a mixture of equity, debt, and technical Assistance.
- Significantly, the support can also be extended to underperforming companies having good export potential.
A key objective of the Scheme
The primary objective behind the introduction of the Ubharte Sitaare Programme is listed hereunder:- To support the MSME units, which cannot scale up their export operations due to lack of finance, having export potentials.
- To identify and encourage the firms to have differentiated products, processes, or technology and to enhance the export business.
- To help the existing exporters widen their products and target new export markets.
- To identify and ease various challenges hindering the exports that successful enterprises face.
Key Features of the Scheme
The key features of the SIDBI Assistance To Export Oriented MSMEs Under the Ubharte Sitaare Programm are listed as follows:- The SIDBI Assistance To Export Oriented MSMEs Under the Ubharte Sitaare Programm scheme offers an attractive Return on Investment (ROI), and the loan will be sanctioned very quickly
- The promoters’ contribution under the Scheme is limited to 20% and 30% for greenfield units
- SIDBI offers financial Assistance in the form of Term Loans/ Foreign Currency Term Loans ( FCTL)
- Technical Assistance for mentorship support and equity support is also provided under the Ubharte Sitaare Programm
- SIDBI also offers up to 25 bps performance or milestone-linked interest incentives to the eligible unity.
Eligible Enterprises Eligible Enterprises
Enterprises eligible under the SIDBI Assistance To Export Oriented MSMEs Under Ubharte Sitaare Programme are listed below:- Future export champions with high potential are eligible to apply for the Scheme
- SIDBI’s target entity under the Scheme is Units having unique technology, products, or processes
- The following high export potential sectors are eligible for financial Assistance under the Scheme:
- Automobiles
- Aerospace & Defence
- Chemicals
- Food Processing
- IT & ITeS
- Pharmaceuticals
- Precision engineering
- Textiles and allied sectors
Eligibility Criteria
The eligibility criteria for availing of the loan under the Ubharte Sitaare Programm are listed as follows:Eligibility Criteria for New units
Promoters with sufficient experience in the proposed line of business and significant projected export revenue are eligible for this Scheme. For units co-funded by technocrats from premier institutions (like Indian Institutes of Technology, Indian Institutes of Management, Indian Institute of Science, National Institute of Technology, etc.), sufficient experience in the proposed line of business shall not be insisted upon.Eligibility Criteria for Existing units
- Fundamentally strong export-oriented small and mid-sized companies with good financials can apply for the Scheme.
- Standard Norms apply (Credit Information Bureau India Limited (CIBIL) / CMR, due diligence checks, etc.)
Quantum of Assistance
SIDBI provides Need-based financial Assistance, subject to a maximum of 80% of the project cost. Joint financing with EXIM Bank is also available under the SIDBI Ubharte Sitaare Programme. As mentioned above, SIDBI offers financial Assistance in the form of Term Loan/ Foreign Currency Term Loan( FCTL) Term loans are provided to Export-oriented MSMEs for expansion, modernization, diversification, technology/capacity up-gradation, product R&D by investment in land and building, machinery and equipment, etc.Interest Rate
The interest rate for the loan under the SIDBI Assistance to Export Oriented MSMEs Under Ubharte Sitaare Programm will be Based on the MCLR of the Bank / Repo rate, with applicable spreads (as per internal rating)Repayment Period
SIDBI offers a repayment period of Up to 6 years, including a moratorium period of Up to 2 years under the Ubharte Sitaare Programm scheme. Note: The repayment period may be Extendable up to 10 yearsDocumentation for AROG Scheme
SIDBI offers a simple one-page application and built-in checklist for SIDBI Assistance To Export Oriented MSMEs Under Ubharte Sitaare Programm). Standard KYC checks and due diligence are available for the Ubharte Sitaare Programs.Scheme Application Procedure
The eligible MSME must access the SIDBI’s online application page to apply for the Scheme. The online Registration Login page will display; by clicking on the Registration tab, a new user can register in SIDBI and avail of the loan.

Related Guides
Popular Post

Starting a small business can be a transformative venture, offering the exciting opportunity...

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Goods & Services Tax Certificate is issued to people who are registered under GST...

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

A trademark search is simply checking if another person or organization does not already own the...

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Internal audit applicability is a critical concept for companies in India, impacting various...

In the business world, two main types of companies exist: private company and public company...

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...