Sidbi Speed Plus Scheme

To facilitate the flow of credit to

Micro Small and Medium Enterprises (MSMEs) for investing in machineries, Small industrial Development Bank of India (SIDBI) has recently launched the new scheme called SIDBI-Loan for Purchase of Equipment for Enterprise’s Development Plus (SPEED Plus) for machinery purchase from Original Equipment Manufacturers (OEMs) on competitive rate of interest. Under this scheme, financial assistance is provided to borrowers of SIDBI, for the purchase of equipment for the development of enterprises. In this article, we will look at the Sidbi Speed Plus Scheme in detail. Know more about the SIDBI Make in India Loan For Enterprises (SMILE)

Eligibility Criteria

The eligibility criteria for availing the loan under the

SIDBI Speed plus Scheme are listed as follows:

To avail the loan, the MSME units should have at least five years of operations with stable sales and cash profits in immediate past 3 years
The MSME should have minimum net sales of 5 crores and no operating loss in immediate past two years

Eligible Expenditure

The eligible expenditure for getting the

SIDBI Speed plus Scheme loan is explained in detail below:

Machinery purchased from identified Original equipment manufacturer (OEM) manufacturing high-end machines or authorized dealers, Indian subsidiaries of such foreign OEMs, which have the strong brand reputation and with whom SIDBI has entered into an MoU
Proposed machinery should relate to the same line of business
Second hand or refurbished machines are not eligible

Quantum of Assistance

Under the Scheme, Up to 100% of the machinery cost subject to a maximum of 2 crores is provided for New SIDBI customers (based on 20% - 30% FD)
Under the Scheme, up to 3 crores are provided for existing customers of SIDBI (based on 15% - 30% FD)

Interest Rate

The interest rate for the loan under the Sidbi Speed Plus Scheme is 8.80% to 10.50% per annum.

Tenure details

The tenure for Sidbi Speed Plus Scheme loan is 2 to 5 years including moratorium of 3 to 6 months

Documents Required

The documents required for Sidbi Speed Plus Scheme is explained in detail below:

Proforma Invoice of the Machinery (quotation)
KYC documents (as per Bank’s guidelines)
Past three years audited financial statements
In case the application is lodged between April-October, CA certified provisional B/s for previous FY
Statement of immovable properties of promoter/directors
Copy of MoA/Partnership deed/Trust Deed
Copy of consent to establish from PCB
Document showing Existing Power load
Application filed for additional power load required
Copy of rent/lease agreement
Details of Loans taken from other banks/FIs/NBFCs which are currently outstanding
Copy of Udyog Aadhar Memorandum (UAM)
Copy of GST Registration Certificate (for GST registered units)
Copy of sanction letters of other lenders for existing banking arrangement
Proof of Identity document
Proof of Address document

Application Procedure for Sidbi Speed Plus Scheme

The application procedure for this Scheme is explained in detail below: Step 1: The eligible MSME enterprise needs to approach the concerned branch for the loan. Step 2: The applicant has to submit an application along with the KYC Application Form and the entire set of supporting documents. The KYC Form (Individuals) and KYC Form (Non-Individuals) is enclosed here:

The application form for the Sidbi Speed Plus Scheme is enclosed here:

Step 3: After verifying the details, the SIDBI will sanction the loan and amount will be credited to the beneficiary’s accounts.

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Frequently Asked Questions

Common questions about SIDBI Speed Plus Scheme: MSME Machinery Loan Details.

The SIDBI Speed Plus Scheme, also known as SIDBI-Loan for Purchase of Equipment for Enterprise's Development Plus (SPEED Plus), is a scheme launched by the Small Industries Development Bank of India (SIDBI) to facilitate the flow of credit to Micro, Small and Medium Enterprises (MSMEs) for investing in high-end machinery from Original Equipment Manufacturers (OEMs).

To be eligible for the SIDBI Speed Plus Scheme, an MSME unit should have at least five years of operations with stable sales and cash profits in the immediate past three years. Additionally, the MSME should have minimum net sales of ₹5 crores and no operating loss in the immediate past two years.

The eligible expenditure under the SIDBI Speed Plus Scheme is the purchase of machinery from identified Original Equipment Manufacturers (OEMs) or their authorized dealers, which manufacture high-end machines and have a strong brand reputation. Second-hand or refurbished machines are not eligible.

For new SIDBI customers, the maximum loan amount is up to 100% of the machinery cost, subject to a maximum of ₹2 crores. For existing SIDBI customers, the maximum loan amount is up to ₹3 crores.

The interest rate for loans under the SIDBI Speed Plus Scheme ranges from 8.80% to 10.50% per annum.

The loan tenure for the SIDBI Speed Plus Scheme is 2 to 5 years, including a moratorium period of 3 to 6 months.

Some of the key documents required for applying for the SIDBI Speed Plus Scheme include proforma invoice of the machinery, KYC documents, audited financial statements, proof of identity and address, and copies of various registrations and licenses.

To apply for the SIDBI Speed Plus Scheme, an eligible MSME needs to approach the concerned SIDBI branch, submit an application along with the KYC Application Form and supporting documents. After verification, SIDBI will sanction the loan and credit the amount to the beneficiary's account.

Yes, there is a fixed deposit requirement for availing the SIDBI Speed Plus Scheme. For new SIDBI customers, the fixed deposit requirement is 20% - 30% of the loan amount, while for existing customers, it is 15% - 30%.

No, the SIDBI Speed Plus Scheme loan cannot be used for purchasing second-hand or refurbished machinery. The loan is specifically for the purchase of new machinery from identified OEMs or their authorized dealers.