She Innovate Forum

A Project Funded by RUSA 2, T5J Major Project, CUSAT

TIFAC-SIDBI Technology Innovation Programme (SRIJAN)

Scheme Sponsor: SIDBI
Mode of Assistance: Funding, Business Development Services
Target Group: New / existing Indian MSME units

About the Scheme:
Launched on November 1, 2010, TIFAC & SIDBI collaborated to create the TIFAC-SRIJAN
Scheme, a program that aims to facilitate technology and innovation projects related to new
product or process development, development of capabilities in MSMEs to innovate, and
bringing high-risk innovations to market to create opportunities for business associated with
innovations. Through the provision of developmental loans with flexible terms and interest
rates, the program assists MSMEs in the development, scaling up, demonstration, and
commercialization of innovative technology-based projects. This helps to encourage and
promote the creation and commercialization of new technologies, processes, and products. As
of right now, the program covers up to 80% of project expenditures, up to a limit of INR 100
lakhs, and provides tailored support for costs beyond INR 100 lakhs.


Assistance Pattern:

  • Development Loan on flexible terms & conditions
  • Assistance up to ~ 80% of total project cost with minimum
  • 20% contribution from promoter
  • Loan assistance normally not more than `100 lakhs for each project
  • Rate of Interest not more than 5% p.a.
  • Repayment in easy installments spacing over 5 years from date of completion of project
  • Security through personal guarantee, hypothecation of assets created / to be created under the project, collaterals, CGTMSE guarantee

Requirements:

  • The development loan will be disbursed by SIDBI in installment(s) based on review of physical and financial progress of the project as per envisaged milestones as recommended by Project Review Committee.
  • The duration of the project should not normally exceed 18 months.
  • Each project proposal will be considered based on technical & financial merits and mere fulfillment of the guidelines shall not qualify for financial assistance.
  • The assistance from the Revolving Fund will be limited to maximum 80% of the estimated approved project cost and the promoter has to contribute minimum 20% of the estimated approved project cost. The expenditure incurred by the promoter more than three months before the date of application shall not be considered as promoter’s contribution
  • The interest on loan shall be not more than five percent (5%) per annum (simple interest).
  • Loan assistance would normally be not more than Rs.100 lakhs for each project.
  • The loan, interest requires personal guarantees from the promoters. Primary security of moveable assets created or to be created under the project will be taken by way of hypothecation on first charge basis. Security of land / building of the assisted project may also be taken.
  • The repayment of loan, together with interest shall commence within one year after the project completion and shall be repaid in five years.


More Information on: https://tifac.org.in/index.php/programmes/admin-finance/sidbi
Application Format Available on: https://www.tifac.org.in/index.php/programmes/admin-
finance/sidbi