Small Industries Development Bank of India (SIDBI) main aim to focus on the Development of Financial Institute of India .The Bank was established on 2 April 1990 through an act of parliament. It is headquartered in Lucknow.
SIDBI primary objective is to strengthen the MSME ( Micro Small Medium Enterprise) sector by facilitating cash flow.
The Bank assist MSME to get fund for the Development, commercialisation and marketing of their innovative technology and Products .
State Bank of India (SBI) is the largest shareholder of SIDBI with holding of 16.73% shares, followed by government of India and Life Insurance corporation of India.
Small Industries Development Bank of India follow four objective which are Development , Promotion , Coordination and Financing .
Loan Types offered by SIDBI Bank
SIDBI Provide Mainly six loan that are discussed below:-
• SMILE – SIDBI make in India soft loan fund for micro small and medium enterprises.
• Smile Equipment Finance (SEF)
• Loan Under Partnership with OEM
• Working Capital ( Cash credit)
• SIDBI Trader Finance Scheme (STFS)
• Loan for purchases of equipments for enterprises development (SPEED)
SMILE( SIDBI make in India Soft loan fund for MSME )
This Scheme main aim to covering Financial requirements for new enterprise . The loan amount offered in this scheme is minimum Rs 10 Lakh and maximum Rs 25 lakh for other purpose.Repayment tenure is maximum of 10 years , including moratorium period of up to 36 month.
Smile Equipment Finance
MSME entities that want to purchase any new equipment or need financing for the same are covered under this scheme . The loan amount offered in this scheme is start from Rs 10 lakh and repayment period is 72 months.
Loan under partnership with OEM
This loan scheme is helpful for MSME that want to purchase any Machine from OEM. The loan amount is offered in this scheme is maximum up to Rs1 crore and the repayment period is 60 months minimum three years of business existence.
This loan scheme offered seamless approvals as per the loan applicants requirement.
SIDBI Trade Finance Scheme
This Loan Scheme is for MSME Retails/Wholesalers who are in existence for at least 3 years with a satisfactory financial position. The minimum Loan amount offered is Rs. 10 lakh and maximum up to Rs. 1 crore. However, the repayment period will depend on the cash flow and size of business. However, the repayment period is maximum up to 60 months.
Loan for purchase of equipment for enterprise development (SPEED)
This loan scheme offer 100% Financing with loan amount up to Rs 1 core for new customers and for existing customers bank offer Rs 2 crore.minimum 3 year of operation are required to get this loan and the repayment period is 2 to 5 years including moratorium period is 2 to 3 months . The internet rate of this loan is 9.25% to 10% per annum.
Some Additional loan types of SIDBI
Starts up lifestyle along with SIDBI Intervention :-
This is the new loan start-ups and ventures in the field of business that requires the right funding from time to time. This initiatives helps in Providing the funds with the help of banks like NBFCs and SFBs.
Fund of Funds of Start- ups :-
Under this Scheme , The Government of India started with this initiative to support various Alternate Investment Funds (AIFs) with the idea that it will bring some contribution to the start-up businesses. It aims to support the growth and development of the enterprises which are innovation driven.
Aspire Fund :-
Aspire fiund main focuse to providing financial backing to start-ups who are in the initial stages of setting up manufacturing and Service.
India Aspirations Fund :-
According to RBI , India Aspirations fund was set up in order to promote equity and equity based investment in start – ups and MSME sector.
Further information , visit official website of SIDBI Bank and gather information.stay well , stay safe . It was
Also read – Non – Performing Asset.