Financing linkages

Beyond the project's own capital incentive, two national instruments are relevant to MSMEs financing the balance of project cost.

How a project is approved

SIDBI

Small Industries Development Bank of India — financing linkage for MSMEs funding their co-investment share.

CGTMSE

Credit Guarantee Fund Trust for Micro and Small Enterprises — collateral-free credit guarantee available to participating units.

Accelerated depreciation

40% of capital cost over two years, available to profit-making entities and typically reducing payback by one to two years.