1. Composite Loan Scheme

Purpose:
Assistance for equipment and/or working capital as also for work sheds.

Eligible Borrowers: 
Artisans, village and cottage industries and small industries in tiny sectors.

Norms: 
Loan Limit-Not to exceed Rs.2.5 million

2. Scheme for Acquisition of ISO series Certification by SSI Unit (RISO 9000)

Purpose:
Expenses on consultancy, documentation, audit, certification fees, equipment and calibrating instruments required would be taken into account for determining the loan requirement.

Eligible Borrowers:
Existing industrial concerns in the SSI sector having a good record of past performance and sound financial position. The concerns should :

1. have been in operation for a period of at least two years,

2. have earned profit and/or declared dividend during the preceding two financial years and

3. not be in default to institutions/banks in payment of their dues.

Norms:
Scheme operated through all eligible Primary Lending Institutions except Regional Rural Banks.

3. National Equity Fund Scheme (NEF)

Purpose:
To meet gap in prescribed minimum promoters' contribution and/or in equity.

Eligible Borrowers:
Small entrepreneurs for setting up new projects in tiny / small scale sector and rehabilitation of potentially viable sick SSI units irrespective of the location. Existing tiny and small scale industrial units and service enterprises [tiny enterprises would include all industrial units and service industries (except Road Transport Operators) satisfying the investment ceiling prescribed for tiny enterprises] undertaking expansion, modernization, technology up gradation and diversification can also be considered irrespective of the location.

Norms:
Scheme operated through SFCs/twin function SIDCs/Scheduled Commercial Banks/ Urban Co-operative Banks.

Cost of project-Not to exceed Rs.5 million
Soft Loan limit-25% of cost of project subject to a maximum of Rs.10,00,000/project 
Service Charges-5% p.a. on soft loan

4. Scheme for Women Entrepreneurs (MUN)

Purpose:
To meet gap in equity

Eligible Borrowers:
Women entrepreneurs for setting up new projects in tiny / small scale sector and rehabilitation of viable sick SSI units. Existing tiny and small scale industrial units & service enterprises [tiny enterprises would include all industrial units and service industries (except Road Transport Operators) satisfying the investment ceiling prescribed for tiny enterprises] undertaking expansion, modernization technology up gradation & diversification can also be considered.

Norms:
Scheme operated through SFCs/twin function SIDCs/Scheduled Commercial Banks/ Select Urban Co-operative Banks

Cost of Project-Not to exceed Rs.1 million
Soft Loan limit-25% of cost of Project subject to a maximum of Rs.2,50,000 per project.
Service charges-1% p.a. on soft loan

5. Scheme for Technology Development and Modernization (RTDM)

Purpose:
Assistance under the scheme would be available for meeting the expenditure on -

1. Purchase of capital equipment, need based civil works and acquisition of additional land.

2. Acquisition of technical know-how, designs, drawings and fashion forecast where relevant to specific product group.

3. Up gradation of process technology and products with thrust on quality improvement comparable with acceptable domestic and international standards.

4. Improvement in packaging.

5. Cost of TQM and acquisition of ISO 9000 series certification.

6. Need based additional / incremental margin money for working capital.

Eligible Borrowers:
Sole Proprietorships, Partnerships, Co-operative Societies, Private and Public Limited Companies.

Norms:
Scheme operated through all eligible Primary Lending Institutions except Regional Rural Banks.

Project outlay should not exceed Rs.10 million
Preliminary and Pre-Operative expenses shall not be covered as a part of the cost of the project.

6. Scheme for Textile Industry under Technology Upgradation Fund (RTUF)

Objective:
To provide encouragement to textile industrial units (including units in the Cotton Ginning and Pressing sectors) in the small scale sector for taking up technology upgradation and to modernize their production facilities. The scheme envisages interest incentive of 5 percentage points on the loans availed by small scale units from eligible Primary Lending Institutions (PLIs) for undertaking technology upgradation/ modernization. New units being set up with technology as per the guidelines of the scheme would also be eligible for the above incentive.

However, procurement of Refinance from SIDBI is not compulsory in respect of SFCs, Scheduled Commercial Banks and select co-opted Co-operative Banks. In case Refinance is availed from SIDBI, such proposals shall conform to norms and parameters stipulated by SIDBI in addition to the guidelines prescribed by GOI. 

Purpose:
Assistance under the scheme would be available for installation of specified types of machinery (to fall in line with definition laid down by Government of India (GOI) for technology upgradation) in a new unit or in an existing unit by way of replacement of existing machinery and/or expansion will be eligible for coverage under RTUF scheme (details of list of machinery are furnished in Section 4 of Technology Upgradation Fund Scheme booklet issued by GOI).

[i] The following investments will also be eligible to the extent necessary for the plant and equipment to be installed for Technology Upgradation and the total of such investments will not normally exceed 25% of the total investment in such plant and machinery:

    a) Land and factory building including renovation of factory and electrical installations

    b) Energy saving devices

    c) Effluent treatment plant (ETP)

    d) Water treatment plant for captive industrial use

    e) Captive power generation

[ii] Investments in the installation of the following facilities including necessary equipment:

    a) In-house R & D including designs studio

    b) Information Technology including ERP.

    c) Total quality management including adoption of appropriate IS /BIS     standards.

[iii] Investment in the acquisition of technical know-how.

Lending in excess of the limits prescribed above in respect of these items will attract the normal lending rates.

Investments in common infrastructure facilities owned by the association, trust or co-operative society of the units participating in the RTUF scheme, to the extent necessary for this purpose, including the following :

i) Common utilities, viz. water supply, power substation, etc.

ii) Common captive power generation.

iii) Common effluent treatment plant.

(Any additional investments would attract the normal lending rates)

Eligible Borrowers:
Sole Proprietorships, Partnerships, Co-operative Societies, Private and Public Limited Companies in the textile and cotton ginning and pressing industries. The textile industry comprises the following activities:

• silk reeling and twisting,

• wool scouring and combing,

• synthetic filament yarn texturising, crimping and twisting,

• spinning,

• viscose filament yarn (VFY),

• weaving, knitting including non-woven, fabric embroidery and technical textiles,

• garment/ made-up manufacturing,

• processing of fibres, yarns, fabrics, garments and made-ups.

Norms:
The scheme would be in operation for a period of five years from April 1, 1999 to March 31, 2004.

Refinance from SIDBI is not compulsory (except for State Co-Operative Banks and other Scheduled Co-operative Banks). However, where refinance is availed from SIDBI such proposals shall conform to norms and parameters stipulated by SIDBI, in addition to the guidelines prescribed by Government of India (GOI).

Amount of loan-Need based.
Promoters' contribution-Minimum 20% of the project cost.
DER-Shall not be more than 2:1 for the unit as a whole.
Further details are furnished in Technology Upgradation Fund Scheme booklet issued by GOI.