Which are the Subsidiary Associates of SIDBI?

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 - Small Industries Development Bank of India

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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.

Functions of SIDBI

The key functions of SIDBI are:

Aid financial institutions in lending to small-scale industries so they can have a healthy financial standing.

Loan offers for small-scale industry (SSI) development and production.

It also offers help in the expansion of marketing channels for SSI sector products both domestically and internationally.

SIDBI promotes industries that create jobs for people in semi-urban areas.

It also helps facilitate the timely flow of credit for working capital and term loans to small-scale industries in partnership with commercial banks.

SIDBI works to empower employment and upgrade technology in the sector.

Convenient Interest Rates

Has collaborations with many banks and international financial institutions. By leveraging these partnerships, SIDBI can offer concessionary rates of interest.

Custom-Made

Offers loans that are customised to your business needs.

Collateral Free

Businessmen can get up to Rs. 1 Crore without having to put up any security.

Venture and Equity Funding

Offers equity-based venture capital to small businesses through their subsidiary SIDBI Venture Capital Limited.

Subsidies

Seek help from SIDBI to take advantage of various government schemes.

Loan Products Offered by SIDBI

Below, you will find a list of the 6 products that SIDBI offers under Direct Loans:

SMILE (SIDBI Make in India Soft Loan Fund for MSME): SMILE focuses on covering the financial requirements for new enterprises. The loan amount offered under this scheme is a minimum of Rs. 10 Lakhs for equipment finance and Rs. 25 Lakhs for other purposes. There is a maximum repayment tenure of 10 years, with a moratorium period of 36 months.
SMILE Equipment Finance (SEF): With a simplified application process and competitive rates, it's an excellent choice for any MSME entity looking for new equipment financing. The loan has a repayment period of 72 months and starts at a minimum of Rs. 10 Lakhs.
Loans under Partnership with OEM (Original Equipment Manufacturer): This loan scheme is a great option for MSMEs. Eligibility requirements are that the business must have a minimum of three years in operation, and the repayment period is up to 60 months. The maximum loan amount is Rs. 1 Crore.
SIDBI Trader Finance Scheme (STFS): STFS is a loan scheme specifically for retail and wholesale MSMEs that have been in existence for three years at the minimum. The amount of the loan starting from Rs. 10 Lakh can go up to Rs. 1 Crore and it can be repaid over a maximum of 60 months.
Loan for Purchase of Equipment for Enterprise’s Development (SPEED): This loan scheme offers 100% financing and a loan amount up to Rs. 1 Crore for new customers and Rs. 2 Crores for existing ones.
Working Capital (Cash Credit): Working Capital Loan is available to small and medium businesses. With instant approvals, this service offers a flexible loan to meet the needs of the applicant.

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
	5 years and a moratorium of 6 months	For existing customers: Up to Rs.2 Crores
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.
TOP UP LOAN FOR IMMEDIATE PURPOSES (TULIP)	5 years		Proof of cash profit in the previous financial year
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

Indirect Loan Schemes Offered Under SIDBI

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.

Additional Loan Products of SIDBI

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.

How to Apply for Loan Through SIDBI?

The 5-step process to apply for a loan from SIDBI is as follows:

Step 1

Visit the official website of SIDBI and click on the ‘Borrower’s Corner.’
Step 2

Click on ‘Online Loan Application.’
Step 3

Enter your username and password.
Step 4

The applicant can choose the amount of loan they would like to borrow.
Step 5

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.

Latest News

MSME Sector Is Regaining Momentum and Repayments Are Normal: Ramann, MD SIDBI

Small Industries Development Bank of India (SIDBI), one of the biggest loan providers in the MSME segment believes that the financial ecosystem damage will be lesser than expected with revival in the post-pandemic economy, as data from the government showed no spikes in defaults of guaranteed loans. Sivasubramanian Ramann, Chairman and MD of SIDBI said that the bank is leveraging technology platforms from GST network to NSEL portal to cut down the loan disbursal time, thereby reducing uncertainty for the borrowers. He also stated that MSMEs have bounced back and the repayments have returned to normal.

- July 03, 2023

PNB Raises ₹3,090 Crores Through Tier-II Bonds, and SIDBI Raises ₹3,000 Crores

Punjab National Bank raised ₹3,090 Crores worth of funds via the sale of 15-year Tier II bonds on 27th June, 2023. The cut-off interest rate was set as 7.74%, according to sources. The bonds have a 10-year call option from the date of allotment. Punjab National Bank had earlier planned the sale of bonds with a ₹1,000 Crore base size and the option of green shoe of ₹3,000 Crores. On the other hand, Small Industries Development Bank of India (SIDBI) raised over ₹3,000 Crores through bond sales that mature in September, 2026 at an interest rate of 7.75%.

- June 29, 2023

Global Alliance of Mass Entrepreneurship creates the NBFC Growth Accelerator Programme with SIDBI

Global Alliance for Mass Entrepreneurship (GAME) received approval from SIDBI for coming up with a scalable and sustainable NBFC Growth Accelerator Program. In the initial phase, the program will involve designing an actionable and comprehensive report with the syllabus structure, piloting strategy and the plan of implementation for NGAP by GAME. This report will also contain evaluation criteria and selection of 20 Non-Banking Financial Companies (NBFCs) that are starting up and relatively small but focused on the segment of MSE to be part of the pilot programme.

- June 15, 2023

GAME and SIDBI Launch the "NBFC Growth Accelerator Programme" to Help MSMEs with Their Funding Challenges

Global Alliance for Mass Entrepreneurship (GAME) along with Small Industries Development Bank of India (SIDBI) have announced a partnership to bring forth the NBFC Growth Acceleration Program (NGAP). The main aim of the programme is to help MSMEs deal with problems such as high cost of service, customer acquisition and scarcity of capital.

The programme proposes to work on capacity building of at least 100 NBFCs that have assets under management ranging from ₹75 Crores to ₹250 Crores, as these NBFCs lend primarily in tier two and tier three cities.

To begin with, GAME would conduct a pilot with 20 NBFCs in order to build and test the program’s strategy, only after which the programme would be expanded to other financial services.

- June 08, 2023

50,000 EVs Will be Financed by SIDBI for MSMEs

In an initiative to encourage electric vehicles, the national bank SIDBI, Small Industries Development Bank of India, has launched a new project called Evolve. Evolve stands for Electric Vehicle Operations and Lending for a Vibrant Ecosystem.

Under the project, the Chairman and Managing Director of SIDBI, S Ramann, announced that the bank would finance 50,000 electric vehicles for MSMEs, Micro, Small and Medium Enterprises. For the programme, the bank has collaborated with the Niti Aayog, World Bank, Korea-World Bank partnership facility and the Korean economic development cooperation fund. SIDBI proposes to offer affordable commercial financial help to various enterprises. Two financing schemes have been launched by SIDBI already that offer direct lending to MSMEs.

- June 08, 2023