Who is it for
- Existing Small and Medium Service Sector Enterprises in need of Loan/Capital for Growth Existing promoters with experience in the similar activity for setting up new projects.
Your current area of operation could be in any of the Service Sector Businesses listed below:
- Hospitality & Tourism related activities (including Health Tourism)
- Health care (Diagnostic & Pathology centres / Clinics, Hospitals, etc.)
- IT and IT enabled services
- Business Process Outsourcing (BPO), Knowledge Process (KPO) and other knowledge based activities
- Advertisement and Promotion Services
- Infrastructure Support Services including activities relating to Telecom
- Transport Services
- Supply chain management
- Warehousing and cold storage
- Retail outlets
- Hotels below 5 star category, especially budget hotels
- Modern health care facilities/ Health clinics/ Hospitals with focus on relatively smaller hospitals
- Franchisees / Franchisors
- Rent a car operators
- Scientific or technical consultancy, testing and analysis agency, event management for industry, promotion of industrial growth.
- Tourism related activities
- Auto workshops / Repairs/ Auto Dealers
- Telecommunication Services
- Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO) and other knowledge based activities like call centres, technical help desks, medical transcriptions, bio- informatics, contract research, etc.
- Setting up of mobile/radio frequency transmission/receiver towers, cabling, network installation, systems integration, service centres, dealerships, etc.
- Setting up of service stations (petrol and gas filling stations, auto workshops, etc.), health and fitness centres, events management, and establishment of design houses/studios.
(The list is only indicative and not exhaustive. We shall be pleased to offer assistance to Service Sector Businesses not listed above.)
- You would like to have adequate capital/loan to meet the growth aspirations of your business.
- You would like to make investments in Marketing, Brand Building, Creation of Distribution Network, Technical Know-how, R&D, Software Purchase, etc but the lenders you typically approach are not comfortable with such intangible assets.
- You would like to raise finance on the strength of your business and backing of your cash flows rather than Asset Cover/ Collateral Security. You would also like to have a longer initial moratorium on principal instalments to ensure greater chances of success for your ventures.(or so that you have adequate time to stabilize the operations of your venture)
- Term loan and. Investment products such as Sub-debt, Equity, convertible debentures, optionally convertible cumulative preference shares, zero coupon bonds, etc.
- Bridge the gap in means of finance for scaling up/ expansion/ modernization projects.
- Access long term structured assistance especially for investments in intangible assets
- Leverage Equity / Sub Debt Assistance from SIDBI for raising higher debt funds.
- Avoid complexities of Enterprise Valuation, Exit Issues etc – associated with Equity Investments.
- Service sector project within the ambit of Section 2 (h) of SIDBI Act.
- Maximum project cost upto Rs 75 crore with term loan from SIDBI not exceeding Rs 50 crore.
- Where investment in equipment is not more than Rs 5 crore, project cost upto Rs 250 crore.
- The unit should generally be a private limited / public limited company. However, partnership firms, sole proprietorship concerns and Societies and Trusts would also be considered on a case to case basis.