Here’s What MSMEs Need To Know About SIDBI

Here’s What MSMEs Need To Know About SIDBI

MSMEs Of India

Huge achievements are built on the foundation of constant small changes in. A country’s economy is a dynamic of such big and small consistent changes. Various sectors strive to contribute their best share to the country’s GDP. Some of them are performing better than the rest. The others need aid and support to function at their optimal level. Apart from this, India is also progressing in the direction of becoming a self reliant country. Hence, the primary focus of the government is providing support to such innovative initiatives from smaller sectors that are on the lines of becoming self reliant. 

Micro, Small, and Medium Enterprises is one of the most promising sectors of the country. The Government frequently launches initiatives to aid this budding sector with financial assistance. SIDBI is one such initiative to help develop the MSME sector better. Let us understand SIDBI better and know about its various features.

What is SIDBI?

What is SIDBI

First things first, here is the SIDBI full form – Small   Industries Development Bank of India is established as a subsidiary entity of IDBI (Industrial Development Bank of India). It aims at providing much needed financial support to the MSME sector of India. It works along with other institutions to enable support for the targeted sector. It provides support in the form of direct and indirect lending. 

It helps the MSMEs with fund acquisition, market entry, product development, and commercialization. There are several SIDBI schemes and financial services for the small scale industries. The broader aim of SIDBI is to promote an increment of cash flow in the MSME market. It will also enhance the global performance of MSMEs.

Objectives of SIDBI

As you know the main aim of SIDBI is to strengthen the MSME sector, now let us look at the overall objectives of SIDBI.

  • Promote development in the MSME sector.
  • Enhance customer service and better functioning
  • Better management
  • Smooth coordination with the several institutions which are part of the process
  • Providing loans according to the unique needs of the MSMEs as financial assistance.
  • Increase the credit flow
  • Helping with the upgradation of technology
  • Encourage innovative ideas that can generate employment opportunities

Functions of SIDBI

  • Loan provision and financial assistance for MSMEs
  • Expansion of marketing mediums for small businesses
  • Refinancing loans that are lent by the PLIs to small scale industries
  • Support sustainable development and energy conservation in the MSME sector
  • Enabling technological upgradation for implementation of modernisation
  • Increasing the credit flow
  • Provision of loans through various financial institutions
  • Ensuring financial health across the industry
  • Provides Venture funding offer
  • Promoting employment generating activities

SIDBI Schemes

There are several schemes offered under SIDBI for direct loans to MSMEs. Let’s take a quick glance at these schemes:

  • SIDBI Make In India Soft Loan Fund for Micro, Small & Medium Enterprises (SMILE)
  • Loans under Partnership with OEM
  • Smile Equipment Finance (SEF)
  • Working Capital
  • Loan for Purchase of Equipment for Enterprise’s Development (SPEED)
  • SIDBI Trade Finance Scheme (STFS)
  • SPEED PLUS
  • Top-up Loan for Immediate Purposes (TULIP)
  • SIDBI – Retail Loan Scheme For Trade Finance (RLS)
  • SIDBI Term-loan Assistance for Rooftop Solar PV Plants (STAR)
  • SIDBI Assistance to Facilitate Emergency Response Against Coronavirus Plus (SAFE PLUS)
  • SIDBI Assistance to Facilitate Emergency Response Against Coronavirus (SAFE)

Benefits of SIDBI

Benefits of SIDBI

SIDBI provides assistance to MSMEs in numerous ways. It has a holistic approach to supporting and strengthening this sector. Here are some of the benefits of SIDBI schemes for entrepreneurs:

  • Customised Credits – Loans which are customised as per the need of the business. Funding businesses in the right way is the goal of SIDBI.
  • Lower Interest rates – SIDBI offers loans at attractive rates to the MSMEs since it is coordinated with several other banks and financial institutions.
  • A holistic approach – SIDBI provides overall support along with guidance and direction along with financial assistance.
  • No need for Collateral for Funding – Up to Rs. 1 Crore of Loans can be availed by the businesses from SIDBI without having to submit any type of collateral.
  • Transparent Procedure – the complete loan process and even the rate structure are transparent. There are no hidden charges implied in this process.

What Are You Waiting For?

Budding entrepreneurs must make the most out of SIDBI! You can’t miss this opportunity to avail funding for your business at such attractive rates. To top it off, there are numerous other benefits that your business can enjoy along with the acquired credit. Now, are you wondering how to go about it?

Apply for SIDBI with Egniol Services today. We provide the best consultancy and assistance for startups. Our team of experts, helps you with the procedure of availing grants and funding Government schemes with all the necessary documentation. Contact Egniol Services today, to begin the application process. 

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