Who screens a SIDBI green loan application first, and what knocks it out early?
Two steps. At the branch, the processing officer checks your project against the exclusion list and the due diligence checklist to screen out high-risk Category A projects. Then an environment and social expert at the programme unit scores it with SIDBI's ESG rating tool. All sub-projects are expected to be Category B or lower.
Step 1: branch
The processing officer screens against the exclusion list and the due diligence checklist. It aims to keep out anything that could be Category A, meaning significant, diverse, irreversible or unprecedented harm. The test looks at three things.
- Project outlay above USD 60 million.
- Whether the impacts would be diverse, irreversible or unprecedented.
- Whether the impacts can be handled through adequate policy and workplace standards.
Also screened out
- Large geographic scale or large infrastructure.
- A location in valuable ecosystems or critical habitats.
- Adverse impact on the rights, resources and lands of indigenous peoples.
Step 2: programme unit
An environment and social expert scores the project with the ESG rating tool, which measures environment, social and governance risk for MSMEs before the financing decision.
What a typical MSME should expect
The programme is built for small, site-specific, reversible impacts. A project on this exclusion list or in Category A is rejected.
What Senseible does here
Senseible's green loan check shows how ready your bills and records are for a green loan, and its finance application tool helps you put them in order. It does not approve loans or speak for SIDBI.
Sources: SIDBI, Environmental and Social Management System for the FMAP programme (ESMS)
Last reviewed 2026-11-04.