About this programme
STHAPAN (Sidbi Thematic Assistance for Purchase of Capital Assets in New Enterprises) is a term loan scheme designed to support greenfield units and new MSMEs in setting up operations. The scheme finances up to 75% of total project cost or ₹20 crore (whichever is lower) for investment in land, machinery, equipment, and civil works. Funds are disbursed as per project milestones with a moratorium period available during the construction phase.
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 manufacturing — pli-eligible sectors, medical equipment, aerospace & defence, auto, industrial plots, machinery, metal forming, etc.. 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
SIDBI extends term loans to support capital acquisition for new enterprises. Funds are disbursed in tranches tied to project milestones. Interest rates are 6.00–7.30% per annum for the first year, adjusted thereafter by internal rating. Loan tenure extends up to 7 years including a moratorium of up to 2 years.
Who can apply
Greenfield new enterprises (MSME) with minimum 25% promoter contribution; units must have been operational for at least 5 years with stable sales and cash profits (for expansion of existing units).
How to apply
- Approach the nearest SIDBI branch or contact the central office
- Submit KYC application form and complete set of supporting documents
- Undertake due diligence (CIBIL/CMR, financial verification)
- Loan appraisal and sanction
- Agreement execution and fund disbursement
Documents you’ll typically need
- KYC application form
- Detailed project report (DPR)
- Audited financials (if applicable)
- Proof of promoter contribution
- Land/property documents
- Equipment quotations and specifications
The exact checklist depends on the programme and your specifics.
Frequently asked
Who is eligible for STHAPAN?
New greenfield manufacturing enterprises (MSMEs) are eligible. Existing units seeking expansion with 5+ years of operation and stable cash profits can also apply, subject to meeting the 25% promoter contribution requirement.
What is the maximum loan amount?
Up to ₹20 crore or 75% of the total project cost, whichever is lower.
Is there a moratorium period?
Yes, SIDBI offers a moratorium period of up to 2 years during which only interest is payable, with principal repayment starting thereafter.
What can the loan be used for?
The funds can be used for purchase of land, machinery, equipment, construction of factory buildings, and other capital assets required for the enterprise.
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.