SIDBI : Scheme for Asset Backed Assistance to Service Sector Entities

SIDBI : Scheme for Asset Backed Assistance to Service Sector Entities


To meet the credit needs of entities / projects creating fixed assets as part of the project / business or offering fixed assets as collateral.

Indicative profile of such businesses:

  • Hotels, Hospitals, Logistic Companies etc.


  • New / Existing Service Sector Entities

Forms of assistance:

  • Term Loan/ Revolving Term Loan / Line of Credit

Quantum of assistance :

  • Need based . Generally not less than `50 lakh.

  • Maximum assistance is subject to caps not exceeding 50 crore for registered MSME units and 35 crore for other eligible service sector projects.

Eligible heads for financing:

  • Capex, movable assets including equipment, current assets, intangibles, WC/ WC margin etc

Rate of Interest (coupon rate):

  • As per internal rating and linked to PLR

Repayment Period:

  • Upto 12 years including moratorium for project based assistance.

  • For non project assistance, upto 5 years including moratorium.

  • For exclusive equipment financing, generally 3-6 years including moratorium.

  • Repayment could be fixed installments or ballooned in line with the expected cash flow.

  • For seasonal industries/ businesses, repayment could be suitably structured


  • The assistance shall be secured by assets acquired under the assistance and/ or other unencumbered assets of the borrower.

  • Other acceptable collateral securities, as may be stipulated.

Upfront Fee

  • Upto 2 %

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