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SME Modernization Scheme


Refinance Facility for Modernization of SMEs

his scheme was originally introduced for Cotton Ginning & Rice Husking Mills, but later extended to cover wide range of SME Clusters/Sectors. Under this scheme, financing is available for new imported/local Plant & Machinery for BMR of existing/setting up of new units and also includes Generators up to 500 KVA. All SMEs defined in Prudential Regulations for SMEs are eligible for this scheme.

Tenor and Pricing

Tenor of loan varies from 3-10 years, with markup rates of 6%.

Under this scheme, financing is also available for purchase of new imported/local plant & machinery for BMR of existing units and/or setting up of new SME units. Financing can also be obtained for import/ local purchase of new generators of a maximum capacity of 500 KVA.The capacity of generator shall, however, not be in excess of SME Unit’s in-house energy requirements or up-to 500 KVA, whichever is less Financing under the Scheme is available at subsidized rate for a maximum period of ten years including a maximum grace period of six months.

S.no Title Downloads
1 SME Modernization Scheme Download
2 Brochure for SME Modernization Scheme Download