SIDBI : Direct Discounting Scheme (Equipments) [DDS(E)]
Objective & Purpose:
The scheme enables the purchase / sale of indigenous machinery /
capital equipment by purchaser/ manufacturer in the MSME sector through deferred
payment facility by discounting the Bill of Exchange with SIDBI.
The scheme covers small machinery manufacturing units, service
sector units and construction industry
Either Purchaser / Seller can belong to MSME sector
After sanction of limit to either seller or purchaser, the Bills
of Exchange are lodged along with Resolution/ Declaration, Certificates from
machinery supplier & purchaser, Letter from purchaser’s banker, Reconciliation
statement as per prescribed formats.
The applicable stamp duty on the BoE has to be paid.
Usance ranges upto 5 years, which can be allowed upto 7 years
Quantum of assistance:
Quantum of limit is based on firm enquiries in hand as also
projected sales, in respect of Sellers; and in respect of Purchasers, based on a
specific requirement for implementation of a new project or for expansion.
Rate of Discount:
Discount rates are linked to the internal credit rating.
Presently, the rate is PLR – 2.5% for BoE co accepted by a Scheduled Commercial
Bank and between 12.25% p.a to 14.50% p.a where limits are backed by security
other than co acceptance by banks.
i) Limits backed by Bank Guarantee or Co-acceptance of bills by
a Scheduled Commercial Bank.
ii) In respect of facility backed by alternate security, charges on movable /
immovable assets as per prescribed norms.