The Small Industries Development Bank of India (SIDBI) was established in 1990 to foster and finance the Micro, Small, and Medium Enterprises (MSME) sector. Additionally, it partners with institutions that provide similar services.
SIDBI loans help businesses grow and expand, without them having to provide collateral. Furthermore, the company’s finance schemes are available in an array of amounts and repayment periods. They range from Rs. 10 Lakhs to Rs. 25 Crores, and repayment periods can be up to 10 years. There's no collateral required for loans below Rs. 1 Crore.
Offers loans that are customised to your business needs.
Loan Scheme |
Loan Tenure |
Loan Amount |
Eligibility Criteria |
Smile Equipment Finance (SEF) |
72 months |
The minimum amount is Rs.10 Lakhs |
3 years experience required in the financial or business sector |
SIDBI Make in India Soft Loan Fund for MSME (SMILE) |
10 years, including a 3-year moratorium |
Rs. 10 Lakhs to Rs. 25 Lakhs |
Both new and existing enterprises can apply |
Working Capital (Cash Credit) |
As per the terms and conditions |
As per the financial capability of the applicant |
Existing consumers of SIBDI and other banks can apply |
Loans under the partnership with OEM (Original Equipment Manufacturer) |
5 years with an eligible moratorium |
Up to Rs. 1 Crore |
3 years experience required in the financial or business sector |
SIDBI – Loan for Purchase of Equipment for Enterprise’s Development (SPEED) |
5 years and a moratorium of 6 months |
For new customers: Up to Rs. 1 Crore |
3 years of business existence and experience along with profit-making for a minimum of 2 years |
For existing customers: Up to Rs.2 Crores |
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SIDBI-Loan for Purchase of Equipment for Enterprise’s Development Plus (SPEED PLUS) |
5 years and a moratorium of 6 months |
New customers: Up to Rs.2 Crores |
5 years of business existence along with profit-making for at least 3 years. |
TOP UP LOAN FOR IMMEDIATE PURPOSES (TULIP) |
5 years |
30% of existing exposure or 20% of net sales subject to Max Rs. 2 Crores |
Existing customers of the SIDBI loan scheme for a year and have good financial records. |
Proof of cash profit in the previous financial year |
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SIDBI TERM-LOAN ASSISTANCE FOR ROOFTOP SOLAR PV PLANTS (STAR) |
5 years and a moratorium of 6 months |
Up to Rs. 2.5 Crores |
Show 2 years of cash profit for existing customers and 4 years of cash profit for new customers, and good financial records |
SIDBI ASSISTANCE TO HEALTHCARE SECTOR IN WAR AGAINST SECOND WAVE OF COVID19(SHWAS) |
5 years |
Up to Rs. 2 Crores |
Proof of cash profit for two years for new customers. Existing customers should be able to show cash profit in the previous audited balance. |
SIDBI ASSISTANCE TO MSMES TO TACKLE COVID19 PANDEMIC(AROG) |
5 years |
Up to Rs. 2 Crores |
Two years of proof of cash profit for new customers. Existing customers are required to show cash profit in the previous audited balance. |
CORONA CRISIS ASSISTANCE FOR TIMELY WORKING CAPITAL (TWARIT) |
4 years and a moratorium of 1 year |
Total outstanding loans of 20% with SIDBI up to Rs.25 Crore |
An annual turnover of Rs.100 Crores and outstanding credit facilities of up to Rs.25 Crores will be required |
Assistance to NBFCs: SIDBI loans are available to NBFCs that are registered with the RBI and are involved in providing financing to the MSME sector.
Refinance Scheme: Under different refinancing programs, SIDBI would give financial support to scheduled banks having solid financial results.
Assistance to Small Finance Banks (SFBs): SIDBI assists banking institutions that are making equity investments for SFB capitalization to bridge the financial deficit.
SIDBI has multiple features that include the following:
SIDBI’s Venture Capital: This loan scheme includes major initiatives to fund start-ups. This includes the start-up life cycle fund and SIDBI interventions fund. It also provides funds for the Aspire Fund and India Aspiration Fund.
Indirect Finance: Offers indirect assistance to Primary Lending Institutions by providing refinance. The goal is to establish a strong credit flow to the MSME sector, with an extensive branch network across India.
Micro Finance : Small Industries Development Bank of India offers loans to small-time entrepreneurs in the form of microfinance.
The 5-step process to apply for a loan from SIDBI is as follows:
Visit the official website of SIDBI and click on the ‘Borrower’s Corner.’
Click on ‘Online Loan Application.’
Enter your username and password.
The applicant can choose the amount of loan they would like to borrow.
A personal details form will appear on-screen. Personal information such as name, username, email, mobile number, business address, state, and district is required. Click ‘Register’ to finish the registration process.
As an applicant, you need to submit address and identity proof, PAN Card, along with business documents.
SIDBI offers Working Capital Assistance, Term Loan Assistance, Foreign Currency Loan, Support against Receivables, Equity Support, Energy Saving scheme for the MSME sector.
Its major shareholders are the Government of India, State Bank Of India, and Life Insurance Corporation of India.
No, the credit score is not considered when applying for a SIDBI loan.
Yes. The Pradhan Mantri Mudra Yojana (PMMY) is a plan established by the Government of India through MUDRA which is a subsidiary of SIDBI to assist small business owners in obtaining financing.
SIDBI (Small Industries Development Bank of India) is a subsidiary of IDBI (Industrial Development Bank of India), which was founded under a special Act of Parliament in 1988 and went into effect on April 2, 1990.
The highest loan amount you can procure under the SIDBI loan program is ₹25 Cores, and the maximum payback period is 10 years.
SIDBI is the Nodal Agency for administering TUFS (Technology Upgradation Fund Scheme) subsidies to units aided by co-opted SIDBI PLIs (Production Linked Incentive Scheme). SIDBI has co-opted 130 banks in the commercial and cooperative sectors, as well as SFCs (State Finance Corporations).
Following are the subsidiaries of SIDBI:
MUDRA
UDAAN
RXIL (Receivables Exchange of India Limited)
Acuite
Online PSB loans
Istsl (India SME Technology Services Limited)
SIDBI's significant activities over the previous 25 years have included providing ₹5.40 Lakh Crore in support of MSMEs. Additionally, through its microfinance activities, it provides loans to millions of impoverished individuals, primarily women.