SIDBI Inland Letter of Credit (INLC) Scheme

To facilitate the flow of credit to Micro, Small, and Medium Enterprises for meeting credit needs, the Small Industrial Development Bank of India (SIDBI) has launched the SIDBI Inland Letter of Credit (INLC) Scheme. Under this scheme, financial assistance is provided to eligible MSMEs for the purchase of capital equipment, and raw materials, which forms a part of the project cost against which SIDBI has sanctioned assistance. For more details on Types of letters of Credit

The objective of the Scheme

The primary objective of the SIDBI Inland Letter of Credit (INLC) Scheme is to meet the credit needs of MSME for the purchase of capital equipment, and raw materials against the Working Capital assistance.

Key Features of the INLC Scheme

The key feature of the SIDBI Inland Letter of Credit (INLC) Scheme is as follows:

It is one of the quick delivery products of SIDBI; a loan under the scheme will sanction within 2 days.
SIDBI provides up to 100% finance for existing and new Ministry of Micro, Small, and Medium Enterprises (existing customers of SIDBI)
Under this step scheme, enterprises will get funding to meet the credit needs of MSME.
To avail of the loan under the scheme, the borrower does not need to pay any processing fee.
Simplified documentation is the feature of the SIDBI Inland Letter of Credit (INLC) Scheme

Purpose Inland Letters of Credit (INLCs) Scheme

The financial assistance under the Inland Letters of Credit (INLCs) Scheme is provided for the purchase of capital equipment, which forms part of the project cost against which SIDBI has sanctioned assistance.
An Inland Letter of Credit is also provided for the purchase of raw material against the Working Capital assistance sanctioned by SIDBI

Eligible Enterprises for INLC Scheme

Small Industrial Development Bank of India (SIDBI) offers financial assistance to its existing MSME customers:

Financial Assistance Offered

Small Industrial Development Bank of India (SIDBI) offers need-based financial assistance to their existing MSME customers under the Inland Letter of Credit (INLC) Scheme. INLC is sanctioned to the unit as a sub-limit, i.e. the total Fund-based and non-fund-based exposure at any point of time shall not exceed the aggregate financial assistance sanctioned to the customer.

Financial Parameters

SIDBI is offering Satisfying minimum financial parameters under the Inland Letter of Credit (INLC) Scheme.

Margin Details

Margin is Not applicable, since INLC is proposed to be opened against aggregate sanctioned assistance where the margin/promoter contribution requirements have already been taken into account.

Security Details

Since the INLC facility shall form part of the aggregate sanctioned assistance, no separate security norms have been stipulated.

New conditions to be imposed

Other special new conditions Depend on the operational requirements of the customers.

Documentation for INLC Scheme

SIDBI offers a simple one-page application and built-in checklist for the SIDBI Inland Letter of Credit (INLC) Scheme. The Standard KYC checks and due diligence are also available for the INLC Scheme.

INLC Scheme Application Procedure

The eligible MSME needs to access the SIDBI’s online application page to apply to 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. 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. 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.

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Frequently Asked Questions

Common questions about SIDBI Inland Letter of Credit INLC Scheme for MSMEs.

The SIDBI Inland Letter of Credit (INLC) Scheme is a financial assistance program designed to meet the credit needs of Micro, Small, and Medium Enterprises (MSMEs) for the purchase of capital equipment and raw materials, which form a part of the project cost for which SIDBI has sanctioned assistance.

The INLC Scheme is available to existing MSME customers of SIDBI. SIDBI offers need-based financial assistance under this scheme to its existing MSME customers.

The primary objective of the SIDBI Inland Letter of Credit (INLC) Scheme is to meet the credit needs of MSMEs for the purchase of capital equipment and raw materials against the Working Capital assistance sanctioned by SIDBI.

Some key features of the INLC Scheme include quick loan sanction within 2 days, up to 100% finance for existing and new MSME customers, simplified documentation, and no processing fees for borrowers.

The financial assistance under the INLC Scheme is provided for the purchase of capital equipment, which forms part of the project cost against which SIDBI has sanctioned assistance. It is also provided for the purchase of raw materials against the Working Capital assistance sanctioned by SIDBI.

SIDBI offers need-based financial assistance to its existing MSME customers under the INLC Scheme, subject to satisfying minimum financial parameters.

No, margin is not applicable for the INLC Scheme since it is proposed to be opened against the aggregate sanctioned assistance where the margin/promoter contribution requirements have already been taken into account.

Since the INLC facility forms part of the aggregate sanctioned assistance, no separate security norms have been stipulated. The existing security arrangements for the sanctioned assistance will apply.

Eligible MSMEs can access SIDBI's online application page to apply for the INLC Scheme. After registration and login, they need to fill in a simple one-page application and built-in checklist. Standard KYC checks and due diligence will be conducted before loan sanction.

One of the key features of the INLC Scheme is its quick delivery. SIDBI aims to sanction loans under this scheme within 2 days, subject to successful completion of the application process and due diligence.