Renu Suresh

Expert

Published on: Jun 24, 2026

SIDBI‘s Asset Light Scheme for Service Sector Entities

To facilitate the flow of credit to the asset-light type of businesses for meeting credit needs, the Small Industrial Development Bank of India (SIDBI) has recently launched a new scheme called Asset Light Scheme for Service Sector Entities. Under this scheme, financial assistance is provided to eligible MSMEs/ service sectors, in the form of a Term Loan & Revolving Term Loan with lower collateral requirements for meeting the credit needs. In this article, we will look at the Asset Light Scheme for Service Sector Entities in detail.

The objective of the Scheme

The objective of this scheme is to meet the credit needs of the ‘asset-light type of businesses‘ mostly in the new emerging segments of the service sector which do not involve the creation of fixed assets and generally operate from leased/rented premises. The key objective is to provide finance to the emerging segments in the services sector with lower collateral requirements.

Key Features of the Asset Light Scheme

The key feature of the SIDBI‘s Asset Light Scheme for Service Sector Entities 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 50 crores for registered MSME units and `35 crores for other eligible service sector projects.
Under this step scheme, enterprises will get funding for Capex including investment in light assets like interiors, equipment, furniture & fixtures, project-related intangibles, etc.
To avail of the loan under the scheme, the borrower does not need to pay any processing fee.
Simplified documentation is the feature of SIDBI’s Asset Light Scheme.

Eligible Enterprises for Asset Light Scheme

SIDBI offers term loans to Service businesses registered as Micro Small Medium Enterprise (MSME) units or other eligible service sector projects as defined by SIDBI

Indicative profile of businesses

Indicative profiles of these service businesses are as follows:

Restaurant Chains & budget hotel chains, Diagnostic/specialty clinic chains
Gyms/fitness centers
Media & entertainment companies
Other service businesses which invest intangible but light assets like interiors, equipment, computers, etc
Organized retail outlets, which invest primarily in interiors and stock, etc

Eligibility Criteria for Asset Light Scheme

The eligibility criteria for availing of the loan under the SIDBI‘s Scheme for Service Sector Entities are as follows:

Eligibility criteria for Existing entities

To avail of the financing under this Scheme, the MSME unit should have a minimum of 3 years of operations
Established model of profitability with net profits in at least 2 of last 3 years.
VC/PE-assisted companies that have not achieved profitability could also be assisted selectively if they present a clear plan/ trend for achieving profitability.

Note: Other financial norms as specified from time to time will also apply.

Eligibility criteria for New Entities

New entities could be considered selectively only if they are promoted by entities/promoter groups with such track records as stated above / related line of business.
Franchisees of well-known franchisors with a track record and franchising experience are also eligible to apply

Loan under the SIDBI‘s Asset Light Scheme

SIDBI ‘s Scheme for Service Sector offers loans either in the form of the Term Loan or Revolving Term Loan

Eligible heads for financing

Capex includes investment in light assets like interiors, equipment, furniture & fixtures, project-related intangibles, etc.

Quantum of Assistance

The Quantum of Assistance under the SIDBI ‘s new Scheme is as follows

SIDBI is providing Rs. 50 lakh for eligible entities based on the needs under this scheme for Service Sector Entities.
Maximum assistance is subject to caps not exceeding `50 crore for registered MSME units and `35 crore for other eligible service sector projects.
Franchisees of well-known franchisors with a track record and franchising experience for maximum assistance of `100 lakh

Rate of Interest

The interest rate for the loan under the scheme will be based on the credit rating and linked to Prime Lending Rate (PLR)

Repayment Period

SIDBI offers a repayment period of up to 5-7 years including a moratorium under the SIDBI’s Asset Light Scheme. Repayment could be suitably structured for seasonal businesses

Security Details

The assistance shall be secured by tangible assets, acquired under the assistance and/or other unencumbered assets of the company
Collateral requirement of 30-50% of assistance

Documentation for Asset Light Scheme

SIDBI offers a simple one-page application and a built-in checklist for this scheme. The Standard KYC checks and due diligence are also available for the STEP Schemes.

Asset Light 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.

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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 Asset Light Scheme for Service Entities.

The Asset Light Scheme for Service Sector Entities is a new scheme launched by the Small Industrial Development Bank of India (SIDBI) to facilitate the flow of credit to asset-light businesses in the service sector. It provides financial assistance in the form of term loans and revolving term loans with lower collateral requirements to meet the credit needs of eligible MSMEs and service sector entities.

The primary objective of the Asset Light Scheme is to meet the credit needs of 'asset-light type of businesses' in emerging segments of the service sector that do not involve the creation of fixed assets and generally operate from leased or rented premises. The scheme aims to provide finance to these service businesses with lower collateral requirements.

Some key features of the scheme include quick loan sanctioning within 2 days, a maximum loan amount of up to ₹50 crores for registered MSMEs and ₹35 crores for other eligible service sector projects, financing for capital expenditure on light assets like interiors, equipment, and furniture, no processing fees, and simplified documentation.

The scheme is designed for service businesses registered as Micro, Small, and Medium Enterprises (MSMEs) or other eligible service sector projects as defined by SIDBI. Some indicative profiles include restaurant chains, budget hotel chains, diagnostic/specialty clinic chains, gyms/fitness centers, media and entertainment companies, organized retail outlets, and other service businesses that invest in light assets like interiors, equipment, and computers.

For existing entities, the eligibility criteria include a minimum of 3 years of operations, established model of profitability with net profits in at least 2 of the last 3 years, and other financial norms specified by SIDBI. VC/PE-assisted companies that have not achieved profitability could also be considered selectively if they have a clear plan for achieving profitability.

Yes, new entities can be considered selectively under the scheme if they are promoted by entities/promoter groups with a track record in a related line of business or if they are franchisees of well-known franchisors with a track record and franchising experience.

SIDBI provides a maximum assistance of ₹50 crores for registered MSME units and ₹35 crores for other eligible service sector projects under the scheme. For franchisees of well-known franchisors, the maximum assistance is ₹1 crore.

SIDBI offers a repayment period of up to 5-7 years, including a moratorium, under the Asset Light Scheme. The repayment schedule can be suitably structured for seasonal businesses.

The assistance is secured by tangible assets acquired under the loan and/or other unencumbered assets of the company. The collateral requirement is typically 30-50% of the assistance amount.

Eligible entities can apply for the Asset Light Scheme through SIDBI's online application portal. After registering and logging in, they need to fill out a simple one-page application and a built-in checklist. Standard KYC checks and due diligence are performed, and the loan amount is credited within 48 hours upon approval.