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SIDBI

SIDBI Bank

Last Updated 27th Nov 2020

The full form of SIDBI is the Small Industries Development Bank. SIDBI ensures steady cash flow in the MSME sector through direct, indirect and microfinance loan schemes.

Loan Product Loan Amount Maximum Tenure
SIDBI Assistance to Facilitate Emergency Response Against Coronavirus (SAFE) ₹ 50 Lakh 5 Years
SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE) ₹ 10 Lakh - ₹ 25 Lakh 10 Years
SMILE Equipment Finance ₹ 10 Lakh 6 Years
Loan for Purchase of Equipment for Enterprise’s Development (SPEED) New customers: Up to ₹ 1 Cr
Existing customers: Up to ₹ 2 Cr
Upto 5 Years
SIDBI - Retail Loan Scheme For Trade Finance (RLS) ₹ 10 Lakh - ₹ 1 Cr Upto 5 Years

Small Industries Development Bank of India (SIDBI)

Small Industries Development Bank of India is a subsidiary of IDBI (Industrial Development Bank of India) that focuses on financing, promotion and development of Micro, Small & Medium Enterprises. Established in the year 1990, it strengthens the MSME sector by facilitating the cash flow in the form of direct, indirect and microfinance schemes. It also assists the industries in these sectors to procure funds for development, commercialization and marketing of their innovative technologies and products.

Functions of SIDBI

SIDBI performs the following functions towards the fulfilment of its objectives which are coordination,development, financing and promotion.

  • It ensures a steady flow of cash to MSMEs through various direct, indirect and microfinance schemes.
  • It also provides finance for technology upgradation and modernization of the MSME sector.
  • It also offers multiple services such as factoring leasing, marketing initiatives, refinancing of Business loans, rediscounts on bills, and others related to industrial concerns.
  • It takes initiatives to create a balance in the financial sector by strengthening the MSMEs.
  • Further, it also promotes employment-related industries and thus keeps a check on urban migration.
  • Finally, the loan amount will be disbursed to the registered bank account.

Main Loan Products offered by SIDBI

SIDBI provides direct, indirect and refinance loans to MSMEs. The direct loan product schemes offered by SIDBI are mentioned below:

  • SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE): This loan product covers existing small enterprises within MSMEs, who are expanding the business by undertaking modernization, upgradation of technology for the growth of their business. They are eligible for loan amounts up to ₹ 10 Lakh and ₹ 25 Lakh for equipment finance and other purposes respectively. The repayment tenure of SMILE is 10 years, including the moratorium period of 36 months.
  • SMILE Equipment Finance: MSMEs, who have the existence of a minimum of 3 years along with a stable financial position, can also avail SMILE Equipment Finance. They can take this loan for investment in plant and machinery, civil construction etc. with a minimum amount of loan worth ₹ 10 Lakh. The repayment tenure for SMILE Equipment Finance is up to 72 months.
  • No impact on the credit score:Loans under Partnership with OEM (Original Equipment Manufacturer): This loan scheme is eligible for MSMEs which can buy equipment from Original Equipment Manufacturer and have a business existence of at least 3 years with stability in the business. They can get a loan amount upto ₹ 1 Cr for a maximum repayment tenure of 60 months including eligible moratorium period.
  • Working Capital Finance (Cash Credit): Existing SIDBI customers or borrowers with other banks are also eligible for working capital finance. Under this loan scheme, the entities are given an option to choose from loan schemes of 2-3 banks. The loan amount and tenure are not fixed and depends on the customer's profile and as per the bank selected by the borrower.
  • SIDBI Trader Finance Scheme (STFS): MSME Retailers/ Wholesalers/ Distributors etc. can avail trader finance schemes for working capital requirements and need-based capital of the business. The loan amount ranges between ₹ 10 Lakh to ₹ 1 Cr for a maximum repayment tenure of 60 months, including the moratorium period
  • Loan for Purchase of Equipment for Enterprise's Development (SPEED): MSME units who have at least 3 years of existence with stable profits in the immediate past 2 years are eligible for a loan for the purchase of equipment for enterprise's development. The finance is provided upto 100% of the cost of the machinery subject to a maximum of ₹ 1 Cr for New to Bank Customers and upto ₹ 2 Cr for existing SIDBI customers. The repayment tenure is 2 to 5 years, including the moratorium period of 3 to 6 months.
  • SIDBI - Loan For Purchase of Equipment for Enterprise's Development PLUS (SPEED PLUS): MSME units with at least 5 years of existence and cash profits in immediate past 3 years along with a minimum net sales of ₹ 5 crores and no operating loss in immediate past two years are eligible for SPEED PLUS loan. The finance is provided upto 100% of the machinery cost upto ₹ 2 Cr and ₹ 3 Cr for New to Bank customers and existing customers of SIDBI respectively. The repayment tenure is 2 to 5 years, including the moratorium period of 3 to 6 months.
  • SIDBI - Retail Loan Scheme For Trade Finance (RLS): MSMEs can avail this loan product for Capex which includes acquiring of business premises/ godown/office repair, furnishing, renovation of existing business premises and/or purchase of furniture & fixtures, equipment's, tools, computers, UPS, DG set, etc. and for working capital/ additional working capital. The loan amount available for trade finance ranges from ₹ 10 Lakh to ₹ 1 Cr for a repayment tenure of 36 to 60 months including moratorium of up to 3 months.
  • Top-up Loan For Immediate Purposes (TULIP): Top up Loan can be taken by MSMEs who have an association with SIDBI for at least 1 year with a soundtrack record and also require finance in the same business line at the same location. The loan can be availed upto 30% of existing exposure or 20% of net sales subject to a maximum of ₹ 2 Cr Crores for a maximum of 5 years including the moratorium period of 6 months.
  • SIDBI Term-loan Assistance For Rooftop Solar PV Plants (STAR): MSMEs can avail this loan product specifically to reduce their power bill. SIDBI short term assistance is provided for ₹ 10 Lakh to ₹ 2.50 Cr for a maximum repayment tenure of 5 years, including the moratorium period of 6 months.

SIDBI Loan Schemes against Coronavirus

SIDBI also provides exclusive loan products for combating with any emergency such as Coronavirus: These loan products are mentioned below:

  • SIDBI Assistance to Facilitate Emergency Response Against Coronavirus (SAFE): MSMEs can avail financial assistance upto 100% for working capital requirements from SIDBI to combat the economic challenges of Coronavirus. They can avail a maximum of ₹ 50 Lakh for a repayment tenure of upto 5 years and 18 months, including the moratorium period for term loan and working capital requirement respectively. SIDBI also ensures the processing of a loan within 48 hours with no processing and prepayment charges for this loan.
  • SIDBI Assistance to Facilitate Emergency Response Against Coronavirus Plus (SAFE PLUS): This scheme provides MSMEs up to 100% financing for working capital requirements for specific orders to overcome financial challenges that arise out of the coronavirus pandemic. SIDBI also ensures the processing of a loan within 48 hours with no processing and prepayment charges for a maximum loan amount of ₹ 1 Cr. SIDBI bears the credit guarantee cost for the SAFE PLUS loan scheme.

SIDBI Other Loan Schemes

SIDBI also offers several indirect and microfinance schemes for MSMEs which are mentioned below:

SIDBI Indirect Loan Schemes

Under indirect loan schemes, SIDBI provides refinancing support to primary lending institutions such as Banks, NBFCs, refinancing institutions etc.

SIDBI Microfinance Schemes

There are primarily 3 schemes under Micro Lending which are mentioned below:

  1. Micro-Lending Development: Under this scheme, SIDBI aims to provide support to the economically weak people, including women.
  2. Responsible Finance Initiatives: It aims to promote cooperation and the good lending practices in the financial sector and thus provides support to the banks and other financial institutions in the country.
  3. Beyond Microfinance:This loan scheme aids the entrepreneurs to upgrade from micro to a higher level at an affordable rate

SIDBI’s Venture Capital

SIDBI's Venture Capital Scheme covers all the initiatives that support start-up funding such as Start-ups Life Cycle along with SIDBI's involvements, Funds of Funds (FFS) for Start-Ups, Aspire Fund, and India Aspiration Fund.

Process to apply loan from SIDBI

To apply for a loan from SIDBI, you need to follow the steps as mentioned below:

  • Visit the official website of SIDBI by clicking on https://www.udyamimitra.in/ and click on the Login button on the right hand of the page.
  • Now, under the Login Tab, select the category 'Applicants' and click on 'New User Registration'.
  • Now choose your category, enter your Name, Email ID, Mobile number and click on Get OTP.
  • Now enter the OTP, and you will be redirected to a new page.
  • Enter all your personal and business details and click on the Submit button.

SIDBI Headquarters

The headquarters of SIDBI is in Lucknow. The complete address of SIDBI Headquarters along with its contact details is mentioned below:
SIDBI Tower, 15, Ashok Marg, Lucknow – 226001, Uttar Pradesh
Fax Number: 0522-2288459
Phone Number: 0522-2288546 ,0522-2288547, 0522-2288548, 0522-2288549 , 0522-4259700

FAQs

What is SIDBI and its function?

SIDBI or Small Industries Development Bank of India is a subsidiary of IDBI (Industrial Development Bank of India) that focuses on financing, promotion and development of Micro, Small & Medium Enterprises. It ensures cash flow to the MSMEs through its direct and indirect loan schemes and micro-finance schemes.

Is SIDBI an NBFC?

No, SIDBI is a development bank, a subsidiary of a wholly-owned subsidiary of IDBI (Industrial Development Bank of India) that provides finance to MSMEs through direct loan products. Along with that, it also assists banks, NBFCs etc. through indirect and microfinance schemes.

What is a SIDBI loan?

SIDBI, a wholly-owned subsidiary of IDBI (Industrial Development Bank of India) provides various loan products for a steady flow of cash in the MSME sector. These loan schemes include direct loans, indirect loans, microfinance loans and venture capital.

How many branches of SIDBI are there in India?

Presently, SIDBI has 73 branches and 5 Regional Offices across the country.


*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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