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SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN)

To facilitate the flow of credit to Greenfield Units (MSMEs) for setting up new units, the Small Industrial Development Bank of India (SIDBI) has recently launched a new scheme called SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN). Under this scheme, financial assistance is provided to borrowers of SIDBI, for the purchase of equipment/land for the development of enterprises. In this article, we will look at the SIDBI STHAPAN Scheme in detail.

The objective of the Scheme

The objective of the SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN) scheme is to support new & existing MSMEs for purchasing growth opportunities

Key Features of the Scheme

• The STHAPAN scheme offers attractive Return on Investment (ROI) and the loan will be sanctioned very quickly
• Another feature of the scheme is the quicker sanction of the loan

Eligible Enterprises

Enterprises eligible under the SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN) is listed below:

• Micro, Small & Medium Enterprises (MSME) setting up units in identified sectors under the production linked incentive scheme
• The high growth/sunrise sector and other important sectors are eligible for the scheme.

Eligibility Criteria

The eligibility criteria for availing of the loan under the SIDBI STHAPAN Scheme are listed as follows:

• New enterprises or Greenfield units are eligible for this new scheme
• To avail of the loan, the MSME units should have at least five years of operations with stable sales and cash profits
• The promoters contribution should be a minimum of 25% to avail the financial assistance
• Standard norms are applied (CIBIL/CMR, due diligence, etc.)

Quantum of Assistance

Under the SIDBI STHAPAN Scheme, up to Rs.2000 lakh are provided for the borrowers subject to a maximum of 75% of the project cost. Financial assistance is provided in the form of a Term Loan.

Interest Rate

The interest rate for the loan under the SIDBI STHAPAN Scheme is 6.00% to 7.30% per annum for the first year with a reset applicable thereafter as per the internal rating.

Repayment Period

SIDBI offers a repayment period of Up to 7 years including a moratorium period of Up to 2 years under the Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN) scheme.

Documents Required

The documents required for the SIDBI STHAPAN scheme is explained in detail below:

• Proforma Invoice of the Machinery (quotation)
• KYC documents (as per Bank’s guidelines)
• 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 STHAPAN Scheme

The application procedure for SIDBI Thematic Assistance for Purchase of Capital Assets in New Enterprises (STHAPAN) is explained in detail below:

• The eligible MSME enterprise needs to approach the concerned branch for the loan.
• The applicant has to apply along with the KYC Application Form and the entire set of supporting documents.
• After verifying the details, the SIDBI will sanction the loan and the amount will be credited to the beneficiary’s accounts.

To know more about the scheme, kindly visit the official webpage of the Small Industries Development Bank of India (SIDBI)