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IND MSE GIFT

IND MSE GIFT

Apply For Loan

IND MSE-GIFT

S.No Parameters Product Features
1. Target Group Micro and Small Enterprises having URC.
2. Eligibility
  • All MSEs registered under Udyam Registration (both in manufacturing and service sector) will be eligible for Interest Subvention component & Credit Guarantee Cover under MSE-GIFT scheme.
  • MSEs availing benefit of guarantee cover under CGTMSE can not avail guarantee cover under MSE-GIFT scheme.
  • MSE unit should not be defaulted to any Banks/FIs/NBFCs etc.
  • The names of the promoters/directors/partners/proprietor should not be appearing in various defaulter lists /CFR/CIBIL/RBI/IBA third party list/caution lists etc. as per Bank’s guidelines.
  • CMR of 1 to 4 or equivalent CIC score.
  • In case of CMR-NA, CIC score of promoters should be 750&above.
3. Eligible Projects
  • Renewable energy (Solar, Wind & Hydro)
  • Mitigation including energy efficiency, cleaner production, resource efficiency, circular economy, etc.
  • Adaptation (water management, water efficiency, wastewater treatment, etc.)
  • Environmental protection (Pollution control, Prevention and treatment)
  • Green buildings, green products, and materials
  • Transport (Urban Rail/Metro, Electric, Hybrid, Battery, EV charging stations)
  • Waste management (Recycling, Waste treatment, Disposal) including waste to energy, e-waste, etc.
  • Cleaner & Greener fuels like Compressed Biogas, ethanol, LNG, smart grids, etc.
  • Any new and innovative project with the potential for a high impact on climate even though such projects may appear to be highly risky.
  • Any other activity which ensures a better environmental outcome.
4. Eligible Machinery Machinery should be available in the 890 – technology list of machineries as defined in the scheme.
5. Interest Subvention under the Scheme         Interest subvention of 2% per annum for term loans with limit of INR 2 crores.

Subvention will be available to MSEs for a maximum period of 5 years.

Interest subvention will be available on loans sanctioned upto and including 31.3.2026.

All the assistance sanctioned after the date of notification of the scheme by MoMSME, GoI would be in operation till such time the interest subvention corpus is fully committed or the tenure of the scheme, whichever is earlier.

Term Loans sanctioned for acquiring new plant & machinery for technology and process up-grade under the scheme shall qualify for the interest subvention subject to compliance with extant scheme guidelines notified by SIDBI from time to time.
6. Nature of Facility Fund Based: Term Loan
7. Loan

Amount

 Minimum:  Rs 10.00 Lakhs

Maximum: Rs 2.00 Crore
8. Margin (Promoter’s Contribution) Term Loan / Machinery       : 25%
9. Assessment
Facilities Type of Assessment
Term Loan Total Cost  Less Margin.
Subject to compliance of DSCR. Realistic projections to be considered.
10. Primary Security:

  • Machinery – Hypothecation of assets created out of the term loan proceeds.

Collateral Security:

  • Nil collateral, if covered under CGTMSE. Guarantee Fee to be borne by borrower.
  • Coverage under Hybrid model is also permitted as per extant CGTMSE guidelines.

 

Risk Sharing Facility (RSF) Partial credit guarantee of 75% of the loan.
Max. permitted loan size Rs 2.00 crore
Extent of Guarantee Coverage:

Category Max extent of Guarantee Coverage
Above Rs 10 Lakhs, upto  Rs 50 lakhs Above Rs 50 Lakhs, upto    Rs .200 lakhs
Micro Enterprises 75% 75%
MSEs located in Northeast Region (incl. Sikkim, UT of Jammu & Kashmir & UT of Ladakh) 80% 75%
Women Entrepreneurs/ SC/ST entrepreneurs /Person with Disability (PwD) / MSE promoted by Agni veers / MSEs situated in Aspirational District / ZED certified MSEs 85% 85%
Other categories 75% 75%
Guarantee Fee
  • Loans Above 10 Iakh upto 50 lakh – 0.55%
  • Loans Above 50 lakh upto 1 crore – 0.60%
  • Loans Above 1 crore upto 2 crore – 1.20% per annum (plus applicable GST) on sanctioned amount (first year) and on the outstanding amount every subsequent year.
  • Guarantee fee is to be borne by the borrower.
Additional concession/ relaxation in Guarantee fee
  • Women/SC/ST/Persons with Disability (PwD) / Agniveers: 10% concession
  • NER including Sikkim, UT of Jammu & Kashmir and   UT of Ladakh (Upto INR 50 Lakh)/ Aspirational District): 10% concession.
  • ZED Certified MSEs: 10% concession
Others
  • MSEs availing benefit of guarantee cover under CGTMSE can not avail guarantee cover under MSE-GIFT scheme within the maximum limit permitted under CGTMSE.
  • Promoters/directors/partners/proprietors should not be in defaulter lists, and MSE units must not have defaulted to any financial institutions.

 

Personal Guarantee: Personal Guarantee of Partners / Directors as per extant guidelines.
11. Rate of Interest Repo Based Pricing
12. Repayment

Period
  • Repayment of Term Loan shall be fixed on the cash flow of the Firm / Company and subject to the compliance of DSCR and other benchmark norms as per Credit Policy
  • Minimum Repayment Period: 36 Months including moratorium period                     (As per Scheme)
  • Maximum Repayment : Upto 60 Months
13. Documentation Term Loan: D7, D32/D33/D34, D36, D57, D101, F172, F189

Other Constitution based documents.
14. Sanctioning Authority As per power booklet, up to their Discretionary Powers.
15. Upfront fees / Processing

charges
  • Processing Charges /Upfront Charges à 50% of Card Rate.
  • Documentation charges à 50 % Card Rate
  • Other Charges as per Service Charges Circular.
16. Bench Mark Compliance
Covenant Benchmark
TOL/TNW (WC & TL) 5:1
Debt Equity Ratio (TL) 4:1
DSCR (TL) Avg.1.50 / Min. 1.25
Fixed Assets Coverage Ratio (TL) 1.20

Any deviation in benchmark ratios to be dealt as per delegated powers.
17. Entry Level Barrier
Exposure of  Rs 1 Cr & above Combined internal rating IB BBB (Based on Icon Rating)
Exposure up to Rs 1 Cr Internal rating BBB (Based on Scoring Model)
18.

 

 Implementation Period of the Scheme
  • The Scheme will be operational from 2023-2024 to 2025-2026.
  • Sunset clause: All the assistance sanctioned after the date of notification of the scheme by MoMSME, GoI would be in operation till such time the interest subvention corpus is fully committed or the tenure of the scheme, whichever is earlier.
19. Other Conditions
  • Due diligence of the suppliers to be ensured.
  • Amount should be remitted directly to the dealers / suppliers by means of DD / NEFT / RTGS.
  • Units should obtain necessary approvals from the statutory/ regulatory authorities.
  • All securities should be adequately insured with Bank Clause (Comprehensive Insurance) – Premium to be borne by the borrower.
  • Any expenditure incurred on ‘civil works or major construction’ is excluded from Ind MSE-GIFT scheme.
  • Promoters’ contribution should be brought up front proportionately.
  • Pre-Release Audit/legal Audit are to be conducted as per extant guidelines of Credit Policy.
  • Charges to be registered with ROC/other authorities as per extant guidelines.
  • Compliance to KYC/ AML and other guidelines to be ensured.
  • Credit Policy guidelines to be complied. Any modifications in the credit policy from time to time will form integral part of the scheme
  • Standard operating procedure for Interest subvention under the scheme is detailed in Annexure – II

 

 

( Last modified on Sep 22, 2025 at 08:09:20 PM )

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