SIDBI Loans
Small Industries and Development Bank of India (SIDBI) mainly focuses on the financing, promotion and development of the Micro, Small and Medium Enterprises (MSMEs). The bank assists MSMEs to get funds for the development, commercialization and marketing of their innovative technologies and products. SIDBI offers customized financial products under several loan schemes and provides services to meet the demands of various business projects.
SIDBI’s Objectives
SIDBI majorly follows four major objectives which are development, promotion, coordination and financing. Some of its key functions include:
- SIDBI extends financial support to Supplemental Security Income (SSIs), and other service sectors
- It provides indirect finance through banks, NBFCs, SFCs and other financial institutions
- SIDBI aims to create equilibrium in the financial sector by strengthening credit flows and promoting skill development
|
Loan Scheme |
Eligibility Criteria | Loan Tenure | Loan Amount |
Features |
| SIDBI Make in India Soft Loan Fund for MSME (SMILE) | New Enterprises in the manufacturing as well as service sector and existing enterprises who want to expand their operations can apply for SMILE | Up to 10 years | Starts from Rs.10 lakh up to Rs.25 lakh | SMILE offers affordable interest rate with a longer repayment period |
| Small Equipment Finance (SEF) | MSME entities who have had three years of existence in financial sector can apply for SEF | Up to 72 months | Minimum loan amount is Rs.10 lakh and the maximum loan amount depends on the financial profile of the applicant | The loan scheme provides simplified application format which is easier for the applicants and the rate of interest is affordable and competitive |
| Loans under partnership with OEM (Original Equipment Manufacturer) | MSME entities who are in the financial sector for at least 3 years can apply for this loan scheme | Up to 60 months | Minimum loan amount is Rs.1 crore. One can apply for higher loan amount as well as per the bank’s guidelines | The loan scheme works as a one stop solution for the MSMEs where they can purchase machines |
| Working Capital (Cash Credit) | Existing customers under SIDBI or other banks can apply for Working Capital | Tenure depends as per the bank guidelines | Depends on the loan applicant’s financial profile | Working Capital gives the option of choosing the banking facilities from at least 2-3 banks |
| SIDBI Trader Finance Scheme (STFS) | Retailers and Wholesalers in distribution, retailing, malls, and super markets with a financial profile for three years can apply for this scheme | The tenure depends on the loan amount and the maximum repayment tenure is up to 60 months | The minimum loan amount starts from Rs.10 lakh up to Rs.1 crore | The rate of interest is competitive along with flexible repayment options |
| Funds of Funds for start-ups | Start-ups who require funds for operational or day to day purpose, can apply for this scheme | As per the loan amount and financial profile of the loan applicant | As per the loan amount and financial profile of the loan applicant | This loan scheme was launched with the idea of supporting Alternative Investment Funds which can help in the contribution of SIDBI |
| Aspire Fund | Enterprises who are enlisted with SIDBI that can support the AIF’s for the contribution to SIDBI can apply for this scheme | Up to 6 years | As per the loan amount and financial profile of the loan applicant | Aspire fund helps in contributing to the early stages of a start-up in the form of manufacturing, service delivery etc |
| India Aspiration Fund | Varies from applicant to applicant | As per the loan amount and financial profile of the loan applicant | The loan amount depends on number of factors as the complete fund size of India Aspiration goes up to Rs.2000 crore | India Aspiration Fund focuses on promoting equity and equity linked investments in the MSME sectors |
| Assistance to NBFCs | The company should be registered with RBI and should be in business for 5 years | The loan repayment period starts from 2 to 5 and half years | The loan amount depends on the need based assistance of the companies | NBFCs and the loan companies that are registered with the RBI help in promoting the financial assistance to the MSME sector |
| Refinance Scheme | The entity should be in business operations for at least 3 years with earned profit of 2 years. The entity should also have strong profit or loss balance sheet for the last 3 years | Up to 5 years. | As per the loan amount and financial profile of the loan applicant | This loan scheme helps in supporting the micro and the small enterprises by providing smooth flow of cash credit to the MSME Sector |
| Assistance to Small Finance Banks (SFBs) | The entity should have a license sanctioned by the RBI to carry out small business operations. The entity should also have profits earned for the last 2-3 years | As per the financial institution’s guidelines | As per the loan amount and financial profile of the loan applicant | Assistance to Small Finance Banks helps in strengthening the small finance banks by providing the financial support |