Finance to Bio fuel projects - SBI Green

Features

• Target Group : Units setting up new / expansion of Bio-fuels extraction plants (including Biomass suppliers / aggregators) for sale to OMCs / Govt. Organisations / Private Companies for usage in transportation, power, heating and other industrial applications.
• Facilities Available :
  • Term Loan, Working Capital, LC & BG
• Quantum of Loan :
  • Rs.50 Crores Max. (to be handled by RDB)
  • Above Rs.50 Crores (to be handled by CCG) At locations where CCG Branches are not available, the proposals above Rs.50 Crores shall be handled by SME Intensive Branches in R&DB with approval by Competent Authority.
• Pricing Attractive Interest rates based on rating of the Borrower/ External Rating or as per Scheme Specific Rating (if applicable) or as per extant guidelines of the Bank.
  • EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) & 6 months MCLR linked (for Non-MSMEs)
• Borrower's Margin / Contribution : Term Loan: Min. 30% of Project Cost. Project cost shall include all components including margin money for Working Capital as per Bank guidelines on financing Term Loan / Project loans.
  Working Capital: Min. 25%
• Repayment Period : Repayment tenor:
  Term loan repayable in 10-12 years. DCCO to be clearly documented / recorded. The overall door-to-door tenor (construction, moratorium + repayment tenor) not to exceed 15 years. Operating unit should also examine availability of tail period at the time of analyzing the financial model and commercial viability of the project.
• Processing Fee/ Upfront Fee : As per Bank’s extant guidelines
• Other Charges : NA
• Special Feature : [Biofuels would include all types of biofuels including CBG (Non-SATAT) as mentioned in the 'National Policy of Biofuels 2018' issued by Ministry of Petroleum & Natural Gas (MoPNG) vide Gazette Notification dated June 8, 2018]
  Ethanol Projects of Sugar Mills / Molasses based / Grain based / Dual feed-based distilleries having Tripartite Agreement between OMC, Bank & Ethanol Producer under EBP programme where the margin is only 5% of Project cost (vide SOP dated 20.01.2021 & 26.04.2021 issued by CPPD), are not eligible for financing under the Product