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SIDBI is IDBI's wholly owned subsidiary, established under a special Act of Parliament in 1988 that went into force on April 2, 1990.
SIDBI manages the Small Industries Development Fund and the National Equity Fund, which IDBI formerly managed. It is primarily in charge of encouraging, funding, and advancing middle and small-sized businesses. SIDBI is also involved in the promotion of energy-efficient activities.
Some of the critical advantages of SIDBI are as follows:
SIDBI makes loans based on the requirements of the organisation. If the firm's needs do not fall into one of the standard categories, SIDBI will give appropriate funds.
SIDBI tailors credits and loans to the size of the organisation. As a result, firms that fit the MSME criteria can get various loans tailored to their individual company needs.
SIDBI has links with various banks and financial organisations worldwide and may be able to offer loans at lower interest rates.
SIDBI not only grants loans but also provides advice and recommendations. Relationship managers at SIDBI assist entities in selecting the best choice and providing assistance till the loan procedure is finished.
Without putting up any security, entrepreneurs may obtain loans of up to 100 lakhs.
An organisation's owner can obtain sufficient cash to satisfy its expansion goals without diluting ownership.
SIDBI has offered a number of plans with low-interest rates and simple conditions. It provides precise information and a deeper understanding of the schemes and loans available, and it may help owners make sensible business decisions.
SIDBI's price and procedure are straightforward. The organisation does not impose any hidden fees.
Some of the direct loan schemes provided under SIDBI are given below-
Schemes |
Loan Amount |
Time Period |
Suitability |
SIDBI Make in India Soft Loan Fund for MSME |
The smallest loan size for equipment financing is ten lakhs. Twenty-five lakhs for other reasons |
Maximum terms of ten years, with a three-year moratorium. |
New companies in the manufacturing and service industries and established entities seeking to expand. |
SEF (Small equipment finance) |
The smallest loan amount is ten lakhs. |
Maximum Time Period- 72 months |
MEMEs that have been in operation for at least three years have respectable financial performance. |
Working Capital |
Depends on financial capability |
As per rules |
Existing entities that are SIDBI or other bank clients |
Loans made in collaboration with the Original Equipment Manufacturer |
The highest amount- 1 crore |
Maximum Time Period- 5 years |
MEMEs that have been in operation for at least three years have respectable financial performance. |
SIDBI stands for SPEED ( loan is provided for the purchase of devices for the development of the enterprises ) |
One crore maximum for new clients Existing customers = maximum of 2 Crores |
Maximum of ten years, with six-month moratorium |
MEMEs that have been in operation for a minimum of three years and a minimum of two years are profitable. |
SIDBI - SPEED (+ loan is available for the acquisition of equipment for the growth of businesses plus) |
New customers = maximum of two crores Existing clients = three crores maximum |
Maximum of ten years, with six-month moratorium |
MEMEs that have been in operation for a minimum of five years and three years are profitable. Net sales must exceed five crores, with no operational losses in the previous two years. |
SIDBI also provides indirect loans to banks, NBFCs, and other financial institutions. The following are the indirect loans that a financial institution can obtain from SIDBI:
Non-Banking Financial Companies (NBFCs), Asset Loan Companies, or any finance firm registered with the RBI that provides credit to the MSME sector can apply for a loan through SIDBI. The eligibility conditions will differ from one lender to the next.
Under different refinancing programmes, SIDBI would give financial support to scheduled banks. SIDBI loans are available to schedule banks with excellent financials.
SIDBI assists those banks by investing in SFB capitalization to close the equity gap. SIDBI has also provided refinancing assistance to MFIs and NBFCs following their conversion to SBFs.
SIDBI assists MSMEs in getting the funding they require to expand, promote, enhance, and commercialise their innovative procedures and products. The bank provides a variety of plans, as well as financial services and products, to meet the needs of people in various industries.
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