The scheme aims to provide financial Assistance by Term loan to the existing MSME units who want to undertake expansion/modernization/capital expenditure in the same line of business by way of purchase of land, construction of factory building, Purchase of equipment, Plant & Machinery and Misc. Fixed assets, Installation of Rooftop Solar Projects, Acquisitions of other energy efficiency devices. This scheme is valid up to 31st March 2022 and may be extended on a need basis.
Eligible Criteria:-
- Financial assistance shall be provided to Micro, small and medium enterprises engaged in high growth and priority sectors (including sunrise sector), thrust sectors for undertaking expansion/modernization/capital expenditure.
- Brownfield enterprises having a minimum of 2 Years of operation and Audited accounts for at least two full years are eligible under the ARISE scheme.
- There must be cash profits in the last audited financial results.
| List of Eligible Sectors under ARISE scheme | ||
|---|---|---|
| Automobiles (excluding dealership) | Automobile Components (include general Engg.) | Medical Equipment, healthcare and hospitals, and Nursing homes and Diagnosting Centers |
| Chemicals and Chemical products | Paper & Paper Products (include Printing) | Renewable Energy including Rooftop solar Projects |
| Electronic systems | Electrical Machinery | Rubber and Plastic |
| Food Processing | Textile and Garments | Ceramics and Stone Processing |
| Iron and steel | Drugs and Pharmaceuticals | Biotechnology |
| Aerospace& Defence | ||
- MSME setting their projects other than the above-mentioned sectors may also allow being covered under the scheme subject to the approval of RO In- charge.
Quantum of Assistance:
- Term loan up to Rs. 500 Lakh per borrower subject to a maximum of 80 % of the project cost shall be allowed.
- For smaller loans up to Rs. 3 crore for machinery/ equipment finance, 100% of the project cost shall be allowed.
- Higher term loan for plant & machinery, purchase of land, construction of factory building, etc. up to Rs. 700 lakh to one borrower can be allowed subject to the approval of RO In-charge.
- Promoters have to contribute a minimum of 20% of the project cost. In case of loans up to Rs. 3 crore on machinery/equipment where 100% financing is proposed, cash collateral up to 25% of project cost on the lines of SPEED scheme shall be applicable.
Interest rate and Repayment:
- Interest rate will be 5.50 % to 6.80 % p.a for the first year. From the next years, it will be as per internal rating.
- Repayment up to 7 years including moratorium up to 2 Years.
Conclusion:
This scheme is to promote existing MSME engaged in high growth and priority sectors for undertaking Expansion/modernization projects. The main benefits of the schemes are attractive ROI, 80% finance of project cost, maximum subsidy benefit, lowest security requirement, and quick sanction. MSME who wants machinery finance for their expansion project can avail 100% financing up to Rs. 3.00 Crore with an attractive rate of interest.
We at SDS Fin Advisory LLP, the best Project finance consultant in Ahmedabad are engaged in the field of Project Finance, MSME loans, Term loans, Machinery Loans, Working Capital loans, unsecured loans, and Government Subsidy work for 20 years. We provide the best service with the most satisfactory result in a timely manner. We have more than 1000 happy clients.
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