Green Finance Loan
Green Finance Scheme (GFS):
Description:
A financial product to support MSMEs and service providers in adopting renewable energy, energy efficiency, and waste management initiatives.
Key Features:
- Term loans available in both Rupee and Foreign Currency.
- Loan amounts:
- MSMEs: Up to ₹20 Crore.
- Service providers/aggregators: Up to ₹50 Crore.
- Flexible repayment tenure of up to 7 years, with a moratorium period of up to 2 years.
- Competitive interest rates based on internal ratings.
- Risk-sharing facilities such as CGTMSE and PRSF may apply.
Eligibility:
- MSMEs and service providers (e.g., RESCOs, ESCOs, EPCs, vendors) engaged in the green value chain on the supply or demand side.
- Entities executing projects or providing services in areas like Energy Efficiency, Renewable Energy, Compressed Bio Gas, Water & Waste Water Management, Solid Waste Management, and E-Mobility.
End-to-End Energy Efficiency (4E) Scheme :
Description:
A focused loan product for MSMEs to finance capital expenditures aimed at achieving energy efficiency and reducing greenhouse gas emissions.
Key Features:
- Financing for capital expenditures, including equipment/machinery purchase, installation, civil works, and commissioning.
- 100% financing for loans up to ₹50 Crore with 25% security in the form of a fixed deposit.
- Loans up to ₹7.5 Crore covering up to 90% of the project cost under a promoter contribution model.
- Attractive fixed interest rates.
- Repayment period of up to 60 months, with a moratorium of up to 6 months.
Eligibility:
- MSMEs in the manufacturing or services sectors.
- MSMEs transitioning to cleaner fuel and improving energy efficiency.
- Compliance with energy efficiency and GHG emission reduction standards.
- Adherence to the Environmental & Social (E&S) framework of the bank.
- Operational for at least 1 year with no defaults to banks or financial institutions.
