SIDBI full form is the Small Industries Development Bank of India. SIDBI MAKE IN INDIA SOFT LOAN FUND FOR MICRO SMALL AND MEDIUM ENTERPRISES (SMILE) has established on 2 April 1990 as a subsidiary bank of the Industrial Development Bank of India (IDBI).
This bank provides funds to MSMEs for the development and trading of their new technologies and products.
Its full form is – Small Industries Development Bank of India. Like IDBI, IFCI, IIBI industrial development banks, SIDBI has been entrusted with the responsibility of financing the establishment, financing, and development, etc. of small scale industries.
More about SIDBI:
– The headquarters of SIDBI is in Lucknow and since 2015 its chairman is Dr. Kshatrapati Shivaji. It has 15 regional offices and 100 branch offices.
– SIDBI assists small scale industries through commercial banks, cooperative and regional rural banks and state industrial finance corporations.
– Small Industries Development Bank of India can also take loans in foreign currency from the Indian capital market and foreign institutions.
– You can get loans for your projects for a maximum period of 6 years. In such a situation, it is important to apply only after evaluating the project correctly.
– Many people invent new technology for business needs or work in that direction. But due to a lack of sufficient capital, they are unable to give him business appearance.
– SIDBI helps in starting a business for such people in the form of small and medium enterprises. In which SIDBI provides necessary technical support along with capital support.
– For this, the Technology Information, Forecasting and Assessment Council has been formed through the Department of Science and Technology.
Brief details on SIDBI:
SIDBI‘s business sector includes micro, small and medium enterprises (MSME), which contribute significantly to the national economy in terms of exports, production, and employment.
The MSME sector is a very important foundation of the Indian economy as it helps to a great extent for the development of the Indian economy with a wide network of 5.1 crore units.
– About 11.7 crore jobs have created through SIDBI.
– More than 6000 products will manufacture.
– SIDBI accounts for 45% of production.
– It accounts for about 45% of manufacturing output.
– Its contribution to GDP is 37%.
How does SIDBI help?
Under the scheme of SIDBI, financial assistance of up to Rs 1 crore provides for the project on making new products along with technology. However, the loan amount cannot be more than 80% of the cost of the project.
– Under this scheme, the loan is available at a cheaper rate. The project approval committee has the right to decide the interest rate.
– All the proposals are sent for technical evaluation for approval of the Technology Information, Forecasting and Assessment Council.
– Also, the responsibility of evaluating the cost of the project rests with the Small Industries Development Bank of India (SIDBI).
How to apply for SIDBI?
One can apply from the website or office of SIDBI to participate in the scheme. The format of application for this can obtain from the website or bank’s branch office.
If you want to apply online, you can visit this site – https://www.sidbi.in/en.
Functions of SIDBI:
Following are the major functions of Small Industries Development Bank of India:
– SIDBI bank provides financial support to the Supplemental Security Income (SSI) and other service fields.
– It provides loans through banks, Non-Banking Financial Company-NBFC, SFC, and other financial institutions.
– SIDBI’s objective is to balance the finance sector by providing loans and promoting skill development.
Products offered by SIDBI:
SIDBI mainly offers 6 types of loans under direct loans which are discussing below:
Under the direct loan, there are 6 main loan schemes,
- SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE),
- Smile Equipment Finance (SEF),
- Loans, under a partnership with OEM
- Working capital (money credit),
- SIDBI Trader Finance Scheme (STFS)
- SIDBI Loan for purchase of equipment/machinery for enterprise development (SPEED).
- SIDBI-Loan for purchase of equipment/machinery for enterprise development Plus (SPEED PLUS)
- Retail Loan Scheme for Trade Finance (RLS)
- Top-up Loan for Immediate Purposes ( TULIP) and
- SIDBI Term-Loan Assistance for Rooftop Solar PV Plants- (STAR)
1. SMILE (SIDBI Make in India Soft Loan Fund for MSME):
SMILE provides loans to new businesses that are in the manufacturing or service sector. Under this scheme, the minimum amount of loan given for purchasing machinery is Rs. 10 lakh.
The loan repayment period is a maximum for 10 years, in which you can start paying EMI in a maximum of 3 years.
2. Smile Equipment Finance (SEF):
A small-medium business that wants to purchase any new equipment/machinery can apply for this loan. The loan repayment period is 72 months and the loan amount is Rs. 10 lakhs.
3. Loan under a partnership with OEM (Original Equipment Manufacturer):
This SIDBI loan scheme is beneficial for small-medium businesses (MSMEs) who can buy machines from OEMs. The business must be a minimum of 3 years old, and the pay-in period is 60 months.
The loan amount offers a maximum of Rs 1 cr.
4. Working Capital (Cash Credit):
Working capital is available for small-medium businesses (MSME). The working capital loan amount provides as per the requirement of the applicant.
5. SIDBI Trader Finance Scheme (STFS):
The STFS loan scheme is for small-medium retail/wholesalers who are in business for a minimum of 3 years. The minimum loan amount available under this is Rs. 10 lakhs and a maximum of 1 cr. However, the payment period depends on the state of the business.
6. SIDBI Loan for purchase of equipment/machinery for enterprise development (SPEED).
7. SIDBI-Loan for purchase of equipment/machinery for enterprise development Plus (SPEED PLUS)
8. Retail Loan Scheme for Trade Finance (RLS)
9. Top-up Loan for Immediate Purposes ( TULIP)
10. SIDBI Term-Loan Assistance for Rooftop Solar PV Plants- (STAR)
SIDBI is executing the PSIG program supported by UKAid through the Department for International Development (DFID), UK. The program intends to guarantee poor and helpless individuals in low salary states (particularly ladies) advantage from monetary development through better access to money related administrations. This venture will guarantee that 12 million poor family units are come to with money related administrations and more than 5 million ladies customers affirm upgrades in economic wellbeing and versatility.
Micro Lending Development:
To make a national system of strong, feasible and manageable Microfinance Institutions (MFIs) for giving microfinance administrations to the monetarily hindered individuals, particularly ladies.
Complete Range of Financial and Non-Financial Services-Financial Support to MFIs-
National Microfinance Support Program ( NMFSP)
A coordinated effort was made with International Fund for Agricultural Development (IFAD), Rome in April-2002 for loaning backing to MFIs.
Support to Small Finance Banks:
- Out of10 entities having inward the SFB permit from RBI, eight were associate MFIs of SIDBI
- Need-based intervention to make easy the smooth conversion from MFI to SFBs.
- Equity asset and resource support with requirements for exchange
SIDBI’s Venture Capital:
This loan offer is mainly to fund start-ups. This includes small Industries Development Bank of India as well as start-up life cycle, funds for start-ups, Indis Aspiration Fund and Aspire Fund.
Start-up Life Cycle with SIDBI:
There are businesses and new start-ups in the field of business that require funds from time to time. It helps in providing funds to these businesses with the help of banks, NBFC and SFB.
Funds for Start-Ups:
The Government of India began supporting the Alternative Investment Fund (AIF) with an initiative that would contribute to some start-up businesses. It aims to support the growth and development of businesses that are starting new start-ups.
Aspire Fund aims at providing financial support to start-ups that are in the early stages of manufacturing and setting up services.
India Aspiration Fund:
With the support of RBI, the India Aspiration Fund establishes to support equity and equity-based investment in start-up and small-medium business (MSME) sector.
SIDBI Online Fixed Deposit Application:
This SIDBI FD scheme is rated AAA(FD) by CARE because of its payments i.e principal & interest securely with highest rates.
The duration of the deposit is a minimum of 12 months & a maximum of 60 months.
- Please visit the official website SIDBI go to menu & select Investor relation or click on this link https://fdappl.sidbi.in/FixedDeposit/welcomeLink.action
- Register for a new account by clicking on Registration/signup link
- Enter applicant name, email address, mobile number, Password, confirm password.
- The password should contain at least 6 characters including a number, lower case letter, special character and not to be the username.
- Verify your OTP & your registration will be successful
- Login to the SIDBI FD account.
SIDBI’s indirect finance:
Under Indirect Finance, there are several schemes where financial assistance has offered to banks, NBFC and SFB.
Assistance through banks, NBFC and SFB:
Indirect finance has provided to banks, NBFC, SFB, and MSMB.
Assistance to NBFC:
NBFC consisting of loan companies and registered with RBI, which provides loans to small-medium businesses (MSMEs).
Assistance has provided to those banks which are financially stable through the re-finance scheme.
Support to Small Finance Banks (SFB):
To strengthen SFB equity and resource base, the scheme was launched. The scheme focuses on providing re-finance support to SFB.
Small Industries Development Bank of India Ecosystem:
- MICRO UNITS DEVELOPMENT & REFINANCE AGENCY LTD. (MUDRA)
- SIDBI VENTURE CAPITAL LIMITED (SVCL)
- CREDIT GUARANTEE FUND TRUST FOR MICRO & SMALL ENTERPRISES (CGTMSE)
- RECEIVABLES EXCHANGE OF INDIA LTD (RXIL)
- ACUITÉ RATINGS & RESEARCH LIMITED
- India SME Asset Reconstruction Company ltd
- India SME Technology Services Limited (ISTSL)
Official Website: https://www.sidbi.in/en
Small Industries Development Bank of India Tower, 15, Ashok Marg, Lucknow – 226001, Uttar Pradesh
Phone Numbers: 0522-2288546, 0522-2288547, 0522-2288548, 0522-2288549, 0522-4259700
Fax Number: 0522-2288459
SIDBI Toll-Free number – 1800-226-753
SIDBI Mumbai Office:
Small Industries Development Bank of India,
C-11, G-Block, Bandra-Kurla Complex, Bandra East,
Phone Number: 022-67531100
Fax Number: 022-67221528
SIDBI New Delhi Office:
Atma Ram House, 1 Tolstoy Marg, New Delhi – 110001
Phone Number: 011- 23448300
Fax Number: 6682462
In this way, SIDBI MAKE IN INDIA SOFT LOAN FUND FOR MICRO SMALL AND MEDIUM ENTERPRISES is one of the best ways to start your big project. The main goal of the Small Industries Development Bank of India is to help and develop small and medium businesses (MSMEs).