SIDBI Assistance to MSMEs For Recovery & Organic Growth During Covid19 Pandemic (AROG Scheme)

Stepping up the fight against COVID -19 and helping

Micro and Small Enterprises (MSEs) battle the prevailing situation, the Small Industries Development Bank of India has launched SIDBI Assistance to MSMEs For Recovery & Organic Growth During Covid19 Pandemic – AROG Scheme. As part of this financial scheme, assistance is provided for MSEs which are involved in the manufacturing of medical products or services related to fighting COVID-19. The main objective of the scheme is to support and encourage those MSEs who are helping the nation fight against the novel Corona Virus. SIDBI provides loans to MSEs at a low rate of interest of 5.5% to 6% within 48 hours, making it easier for them to facilitate tasks that can help tackle the pandemic. Know more about SIDBI Assistance to Healthcare Sector In War Against Second Wave Of COVID19 (SHWAS Scheme)

The objective of the AROG scheme

As mentioned above, the key objective of the AROG scheme is to provide financial support to MSEs which are involved in the manufacturing of products related to the fight against the novel Coronavirus. The SIDBI also aims to provide loans to MSEs which are providing services related to COVID-19.

Key Features of the AROG scheme

The key features of the SIDBI Assistance to MSMEs For Recovery & Organic Growth During Covid19 Pandemic (AROG Scheme) are as follows:

Small Industries Development Bank of India is offering 100% finance under this financial scheme
SIDBI also offers the very low collateral option to borrowers
The eligible Healthcare Sector unit is not required to pay any processing fee to avail of the loan
ROG scheme provides Attractive Interest Rates, SIDBI provides loans to MSEs at a low rate of interest of 4.5% to 5%
Credit Guarantee option also available to MSE (Charges to be borne by SIDBI)

Purpose of Loan under AROG scheme

Small Industries Development Bank of India is providing the loan to the MSE to fight against the second wave of COVID-19.

The MSE unit can use the loan available under the AROG scheme is to purchase any equipment or assets for manufacturing or delivery of services
The loan can also be used for the purchase of raw material or consumables for the production of items that are used for the fight against the second wave of COVID-19.

Eligible Entity for AROG scheme

SIDBI Assistance to MSMEs For Recovery & Organic Growth During Covid19 Pandemic (AROG Scheme) is applicable for all existing MSEs that manufacturing the following products. Micro and Small Enterprises (MSEs) engaged in manufacturing of products or services which are directly related to fighting coronavirus such as;

Pulse Oximeters
Permitted drugs (Remedesivir, Fabiflu, Dexamethasone, Azithromycin, Zincovit, Limcee, Ivermectin, Paracip, Azax, Betadine
Ventilators and PPEs
Inhalation Masks
IV fluid – DNS/Dextrose
IV Sets and IV Cannula
ICU Beds
Cardiac Monitors
Syringe pumps
Portable X-ray machines
Endotracheal tube
Suction tube

The assistance provided for SIDBI’s existing customers and new SIDBI customers

The Existing Customers of SIDBI need to furnish the Cash profit in the last audited balance sheet (i.e. FY 2020)
New customers to SIDBI need to furnish the Cash profit in the last two years.
The MSE should have a Satisfactory Credit track record with existing Bankers / Financial Institutions.

AROG scheme Loan Details

SIDBI is providing Rs. 200 lakh for eligible entities under the SIDBI Assistance to MSMEs For Recovery & Organic Growth During Covid19 Pandemic (AROG Scheme). This scheme offers loans either in the form of the Term Loan or Working Capital Term

Term Loan is provided for acquiring equipment/machines
Working Capital Term Loan can be availed for purchasing the raw materials or executing confirmed orders

Rate of Interest

The SIDBI has fixed the rates of Interest for 5.5% to 6% per annum on reducing balance.

Security Details

For Existing customers: SIDBI will extend the existing securities or any other security to meet asset coverage
For New customers: Credit guarantee cover will be offered at no cost or any other security offered by the borrower to meet asset coverage norms

Repayment Details

The maximum repayment period for the term is 60 months including a 1-year moratorium and Working Capital Term Loan that need to be repaid within 18 months including a suitable moratorium.

Documentation for AROG Scheme

SIDBI offers a simple one-page application and built-in checklist for SIDBI Assistance to MSMEs for Recovery & Organic Growth during Covid19 Pandemic (AROG Scheme). The Standard KYC checks and due diligence are also available for the AROG application.

AROG Scheme Application Procedure

The eligible MSME needs to access the SIDBI’s

online application page to apply 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.

AROG Scheme - Application The applicant entity needs to provide the details of Enterprise Name, Phone number, Email, and Proposed Total Loan Requirement. On successful registration, the user name and password will be provided to the entity.

AROG Scheme - User Registration Page After login into the portal, the applicant needs to fill in a simple one-page application and built-in checklist. After the Standard KYC checks and due diligence, the loan amount will be credited to the applicant’s account within 48 hours.

AROG Scheme - User Login Page

Back to Learn

Frequently Asked Questions

Common questions about SIDBI AROG Scheme.

The AROG Scheme stands for SIDBI Assistance to MSMEs For Recovery & Organic Growth During Covid19 Pandemic. It is a financial scheme launched by the Small Industries Development Bank of India (SIDBI) to provide assistance to Micro and Small Enterprises (MSEs) involved in manufacturing medical products or providing services related to fighting COVID-19.

The main objective of the AROG Scheme is to support and encourage MSEs that are helping the nation fight against the novel Coronavirus pandemic. It aims to provide financial support to these MSEs involved in manufacturing products or providing services related to COVID-19.

Some of the key features of the AROG Scheme include 100% finance for eligible MSEs, low collateral options, no processing fees, attractive interest rates ranging from 4.5% to 5%, and the availability of a credit guarantee option (with charges borne by SIDBI).

The AROG Scheme is applicable to existing MSEs engaged in manufacturing products or providing services directly related to fighting COVID-19, such as pulse oximeters, permitted drugs, ventilators, PPEs, inhalation masks, IV fluids, ICU beds, cardiac monitors, and portable X-ray machines, among others.

Under the AROG Scheme, SIDBI is providing loans up to Rs. 200 lakh for eligible MSEs. The loan can be availed either as a Term Loan for acquiring equipment/machines or as a Working Capital Term Loan for purchasing raw materials or executing confirmed orders.

The maximum repayment period for the Term Loan under the AROG Scheme is 60 months, including a 1-year moratorium. For Working Capital Term Loans, the repayment period is 18 months, including a suitable moratorium.

For existing SIDBI customers, the existing securities or any other security to meet asset coverage will be extended. For new customers, a credit guarantee cover will be offered at no cost, or any other security offered by the borrower to meet asset coverage norms will be accepted.

MSEs can apply for the AROG Scheme by accessing SIDBI's online application page, registering as a new user, and filling out a simple one-page application and checklist. Standard KYC checks and due diligence will be carried out, and the loan amount will be credited within 48 hours upon approval.

SIDBI offers a simple one-page application and built-in checklist for the AROG Scheme. Standard KYC checks and due diligence are also required as part of the application process.

SIDBI has fixed the interest rates for loans under the AROG Scheme at 5.5% to 6% per annum on a reducing balance basis, which is considered an attractive interest rate for MSEs.