Sustainable Finance Scheme was introduced by Small Industries Development Bank of India (SIDBI). The scheme was introduced for funding sustainable development projects that contribute energy efficiency and cleaner production but not covered under the international or bilateral lines of credit. Under this scheme all sustainable development projects such as renewable energy projects, Bureau of Energy Efficiency (BEE) star rating, green microfinance, green buildings and eco-friendly labelling, etc. are applicable.


  • The acceptable standards for this scheme are:
  • Any potential CP investments that include waste management
  • Renewable energy projects like solar power plants, wind energy generators, mini hydel power projects, biomass gasifier power plants, etc. for captive/ non-captive
  • Suitable assistance to OEMs that manufactures energy efficient/ cleaner production/ green machinery/ equipment. Either the OEM has to bean MSME, or it has to be supplying its products to a substantial number of MSMEs


  • New/ existing MSME units would be eligible for assistance under the scheme.
  • Existing units must have a satisfactory track record of the past performance and sound financial position and should not be in default to institutions/ banks
  • A minimum credit rating of investment grade or its equivalent according to the internal credit rating model.

Rate Of Interest

The standard lending rate by the credit rating of MSMEs.

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