Small Industries Development Bank of India SIDBI www.deekpay.com

Small Industries Development Bank of India SIDBI Small Industries Development Bank of India SIDBI

Indiaelement

What is SIDBI

SIDBI stands for Small Industries Development Bank of India.SIDBI is a wholly owned subsidiary of IDBI (Industrial Development Bank of India) under theIndiaEstablished by a special Act of Parliament in 1988, it came into force on 2 April 1990.

SIDBI manages the Small Industries Development Fund (SIDF) and the National Equity Fund (NEF), which were previously managed by IDBI. SIDBI is the leading financial institution for promotion, development and financing of the MSME (Micro, Small and Medium Enterprises) sector. SIDBI promotes cleaner production and energy efficiency besides focusing on the development of the MSME sector.

SIDBI helps MSMEs to get the finance they need to grow, market, develop and commercialise their technologies and innovative products. The bank offers a wide range of schemes and provides financial services and products to cater to the various business needs of individuals.

SIDBI provides financing services

The following services are available to the customers of Small Industries Development Bank of India:

SIDBI Ventures: The loan programme covers a number of major initiatives to provide start-up capital. This includes the start-up life cycle as well as SIDBI interventions such as the Start-up Fund, Aspire Fund and Aspiration India Fund. Startup Lifecycle and SIDBI Intervention: The business world is constantly filled with new startups and enterprises in need of funding. This initiative helps in providing funds with the assistance of banks, NBFC and SFB. Fund of Funds for Startups: The Government of India has launched this initiative to support various Alternative Investment Funds (AIFs) in the hope of helping startups. The objective is to promote the growth and development of innovative enterprises. Aspire Fund : The Aspire Fund focuses on providing financial support to startups in the early stages of setting up manufacturing and service businesses. Aspire India Fund: Aspire India Fund has been set up with the support of the Reserve Bank of India to promote equity and shareholding investments in the start-up and MSME sectors. Direct Finance: Under its various direct finance lending schemes, SIDBI provides working capital assistance, term loan assistance, foreign currency loans, accounts receivable support, equity support and energy conservation schemes to the MSME sector. Indirect Financing: SIDBI provides indirect assistance by refinancing PLIs (major lending institutions), which include banks, state level financial institutions and other institutions with a large network of branches across the country. The main objective of the refinancing programme is to strengthen the resource position of the PLIs so that credit flows to the MSME sector. Microfinance: The Small Industries Development Bank of India provides microcredit to small traders and entrepreneurs to help them get started.

Functions of SIDBI

The Small Industries Development Bank of India (SIDBI) refinances and resources PLI's loans to small industrial units. SIDBI provides bill discounts and rediscounting. SIDBI also helps in expanding the marketing channels for SSI (Small Scale Industries) sector products in the domestic and international markets. SIDBI provides factoring, leasing and other services to small scale industrial enterprises. SIDBI encourages employment oriented industries, especially in the rural-urban areas, to create employment opportunities and thereby discourage migration to urban areas. SIDBI has initiated steps for modernisation and technological upgradation of existing units. SIDBI collaborated with commercial banks to provide timely flow of working capital credit and term loans to small scale industries. SIDBI collaborates with national level venture funds for outreach.

Advantages of SIDBI

Tailor-made: Small Business Development Bank of India provides loans as per the requirements of the business. If the requirements of the business do not fall under the common and usual categories, Small Business Development Bank of India will help the business to get the funds in the right way. Dedicated size: credits and loans are scaled according to the size of the business. Thus, MSMEs can get different types of loans to meet the business growth needs. Attractive Interest Rates: SIDBI has tie-ups with a number of banks and financial institutions across the globe to offer favourable interest rates.SIDBI has tie-ups with the World Bank and the Japan International Cooperation Agency (JICA). ASSISTANCE: SIDBI not only provides loans but also offers assistance and much-needed advice. Its relationship managers assist entrepreneurs in taking the right decisions and help until the loan process is over. Free Guarantee: Businesses can avail loans up to Rs. 1 lakh without providing a guarantee. Capital Growth: without affecting the ownership of the company, entrepreneurs can access sufficient capital to meet their growth needs. Equity and Venture Capital: SIDBI has a wholly owned subsidiary called SIDBI Venture Capital Limited, which provides equity growth capital through venture capital funds focusing on MSMEs. Subsidies: SIDBI offers various schemes at favourable interest rates and liberal terms and conditions.SIDBI has in-depth knowledge and extensive knowledge of various schemes and loans. TRANSPARENCY: SIDBI's processes and rate structures are transparent and there are no hidden charges.

Direct Finance Loan Scheme offered by SIDBI

Loan Scheme Loan Amount Loan Tenure Eligibility Criteria SIDBI Soft Loan Fund for Manufacturing MSMEs in India (SMILE) Minimum loan amount for equipment financing is Rs. 10 lakhs and other minimum loan amount is Rs. 25 lakhs. Maximum 10 years including 3 years moratorium. New businesses in manufacturing and service sectors and existing businesses undergoing expansion. Smile Equipment Finance (SEF) Minimum loan amount of Rs. 1 lakh. Up to 72 months. Micro, Small and Medium Enterprises (MSMEs), which have been in existence for at least 3 years and are financially sound. Loan up to Rs. 10 lakhs with OEM (Original Equipment Manufacturer). Up to 5 years. For MSMEs, which have been in existence for at least 3 years and are financially sound. Working capital (cash credit) depends on the financial capability of the applicant. As per terms and conditions. MSME unit is an existing customer of SIBDI or other banks.SIDBI - Loan for Purchase of Equipment for Enterprise Development (SPEED) Maximum machinery cost of 100% for New Bank (NTB) customers and Rs. 20 million for existing SIDBI customers. Maximum 2-5 years including a moratorium period of maximum 3-6 months. The MSME unit has been in operation for at least 3 years with steady sales and cash profits for the last two years.SIDBI - Loan for Purchase of Business Development Equipment (SPEED PLUS) Up to Rs. 20 million for new customers of SIDBI for machinery cost of up to 100% and up to Rs. 30 million for existing customers of SIDBI. Maximum 2-5 years including a moratorium period of up to 3-6 months. The MSME unit has been in operation for at least 5 years with steady sales and cash profits for the last 2 years. Supplementary Loan on Demand (TULIP) 30% of existing exposure or 20% of net sales up to a maximum of Rs. 20 million. Maximum 5 years including 6 months moratorium. Minimum 1 year of associate co-operation with SIDBI.SIDBI Term Loan Assistance for Rooftop Solar PV Plants (STAR) Rs. 1 lakh to Rs. 25 lakh. Maximum 5 years including moratorium of 3-6 months. 2 years cash profitability proof and good financial track record.SIDBI Assistance for Facilitating Coronavirus Emergency Response (SAFE) Up to Rs. 5 lakhs. Maximum 5 years. For new bank customers - minimum 2 years of cash profit and accounts; For existing bank customers - last audited balance sheet and cash profit on accounts.SIDBI Assistance for Facilitating Emergency Response to Coronavirus (SAFE PLUS) Maximum Rs. 10 lakhs. 4 months period for repayment. For new customers of the bank - cash profits and accounts for at least two years; For existing customers of the bank - cash profits on last audited balance sheet and accounts. Timely Working Capital Assistance for Revival of Industries during Corona Crisis (TWARIT) Not exceeding 20% of the total outstanding loans of SIDBI up to Rs. 250 million as on 29th February 2020. Maximum 4 years including 1 month moratorium. As on 29 February 2020, the aggregate outstanding credit limit in the accounts of all existing borrowers will not exceed Rs. 250 million.

How to apply for a loan through SIDBI

To get a loan through the Small Industries Development Bank of India, a business must go through the following process:

Step 1: The SIDBI recognised consultant will prepare the required documents. Based on the requirements and information specified by the MSME, the consultant will prepare a BIM (Basic Information Memorandum). This document will include all the information related to rating agencies and banks.

Step 2: The Basic Information Memorandum is approved by the MSME entrepreneur. The recognised consultants will then submit the Basic Information Memorandum to the Small Industries Development Bank of India (SIDBI).

Step 3: If required, the proposal will be rated by a rating agency approved by the Reserve Bank of India.

Step 4: SIDBI will directly address the following scenarios:

SIDBI will provide equity or quasi-equity to existing growth units. The bank will finance units in the service sector. It will provide credit to MSMEs for cleaner production processes and energy efficiency.

Step 5: For all other cases, the loan application will be submitted to the public sector banks. SIDBI (Small Industries Development Bank of India) has entered into a Memorandum of Understanding (MoU) with public sector banks for disbursing loans.

The Small Industries Development Bank of India (SIDBI) will assist entrepreneurs at every stage until the loan is finally processed. MSMEs have a better chance of obtaining loans, raising funds in a timely manner and also avoiding unnecessary delays.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.