MSE Green Investment and Financing for Transformation (MSE-GIFT)
About the Programme
MSE Green Investment and Financing for Transformation (MSE-GIFT) provides an enabling ecosystem through which institutional finance is made available to Micro and Small Enterprises at a concessional cost for adopting clean and green technologies. It supports renewable energy, energy efficiency, cleaner production, resource efficiency, water management, pollution control, green buildings, clean transportation, waste management and other environmentally sustainable projects.
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Benefits
- Interest subvention of 2% per annum on eligible term loans up to ₹2 crore, available for a maximum period of five years.
- Risk Sharing Facility for eligible loans up to ₹2 crore.
- Improved access to institutional finance for adopting green technologies.
- Potential reduction in borrowing costs and collateral requirements.
- Support for renewable energy, energy-efficient machinery, waste management, water efficiency, green buildings, pollution control, electric or hybrid transport and circular-economy projects.
- Eligible MSEs may avail either the Interest Subvention component, the Risk Sharing Facility, or both.
Eligibility
- Udyam-certified Micro and Small Enterprises in the manufacturing and service sectors.
- Eligible loan size generally ranges from above ₹10 lakh to ₹2 crore.
- Maximum repayment period for interest-subvention purposes is five years.
- Machinery or technology should be included in the approved green-technology list.
- The enterprise and its promoters, directors, partners or proprietor must not appear in applicable defaulter or caution lists.
- The MSE must not have defaulted to any bank, financial institution or NBFC.
- An MSE cannot simultaneously obtain guarantee cover under both CGTMSE and MSE-GIFT for the same eligible exposure beyond the permitted limit.
- Civil works and major construction expenditure are excluded.
How to Apply
- Identify an eligible green project, such as renewable energy, energy-efficient machinery, waste management, water management, green buildings, clean transportation or circular-economy practices.
- Approach a Participating Financial Institution enrolled under the scheme through SIDBI.
- Submit the green-project proposal and normal loan application to the institution.
- The institution evaluates the proposal and determines eligibility.
- After sanction and implementation, the required scheme documents are submitted through the lending institution.
- Use the approved finance for the identified green technology and comply with the scheme guidelines.
Documents
- Loan/project sanction letter.
- Declaration and undertaking executed between the Participating Financial Institution and borrower.
- Tax invoices for eligible plant and machinery covered under the project.
- Geotagged photograph or snapshot of the project site.
- Udyam Registration details.
- Green-project proposal and machinery/technology details.
- KYC and financial documents required by the lending institution.
- Confirmation relating to the borrower’s non-default status.
- Any additional documents required by SIDBI or the Participating Financial Institution.
FAQ
Q: What is MSE-GIFT?
A: It is a scheme for providing concessional institutional finance and credit-guarantee support to MSEs adopting green technologies.
Q: Who are the target beneficiaries?
A: Udyam-certified Micro and Small Enterprises in India.
Q: What is the interest benefit?
A: A 2% annual interest subvention on eligible term loans up to ₹2 crore for a maximum of five years.
Q: What is the Risk Sharing Facility?
A: It provides partial credit-guarantee coverage to participating financial institutions against eligible green-project loans.
Q: Can an MSE use both components?
A: Yes. An eligible MSE may avail the interest-subvention component, the Risk Sharing Facility, or both.
Q: Can an MSME register directly?
A: No. The application for benefits must be processed through an eligible Participating Financial Institution.
Q: Whom should an applicant contact for assistance?
A: A Participating Financial Institution or SIDBI.
Beneficiary:
As mentioned above
Benefits:
Support for energy-efficient machinery and cleaner production systems.
How To Apply
As mentioned above