About this programme
The Green Finance Scheme provides project-based loans to MSMEs and entities in the green value chain for renewable energy and sustainable projects. It covers sectors including renewable energy, clean transport, waste management, energy efficiency, and circular economy, with financing available for greenfield and brownfield enterprises. It is run by SIDBI.
The support is delivered through the programme’s own structure, and the form it takes is set by the issuing authority. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in renewable energy, clean transport, waste management, energy efficiency, circular economy. Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
MSME submits project details and financing request for green initiative. SIDBI evaluates project alignment with sustainability criteria and ESG framework. Loan is disbursed post-approval for project implementation. Financing covers project establishment and operational costs with varied repayment structures.
Who can apply
MSMEs engaged in sustainable development such as renewable energy, energy efficiency, clean transport, waste management, and environmental services. Entities must be in operation for at least 1 year, have no loan defaults, and comply with the bank's Environment and Social (E&S) framework.
How to apply
- Identify eligible green project (renewable energy, waste management, etc.)
- Prepare project documentation and implementation plan
- Approach SIDBI with project details and financing request
- Submit business registration, financial statements, and project proposal
- Undergo appraisal and ESG framework compliance check
Documents you’ll typically need
- Project proposal and implementation plan
- Business registration and MSME certificate
- Financial statements and bank statements
- GST registration
- Project cost estimates and technical specifications
- Identity and address proof
- Environmental clearance (if applicable)
The exact checklist depends on the programme and your specifics.
Frequently asked
What types of renewable energy projects are eligible under GFS?
Eligible projects include wind energy, solar power, mini hydel power, biomass gasifier plants, and other renewable energy installations for captive or non-captive use.
Can new businesses access the Green Finance Scheme?
Yes, both greenfield (new) and brownfield (existing) enterprises are eligible if they meet the 1-year operation requirement and comply with E&S framework.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.