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Small Industrial Development Bank of India (SIDBI) purpose is to arrange finance facilities for MSME sector and to provide short term lending to businesses. It was recognized on April 2, 1990, through an act of parliament. To arise as a single window for gathering the monetary and developing requirements of the MSME sector SIDBI loan was introduced as preferred brand and consumer pleasant institution for improvement of shareholder’s wealth through new technology stage.

SIDBI’s Objectives

SIDBI follow the major objectives which are development, promotion, coordination and financing. Main points are here,
  • To cover monetary support to supplemental security income and other sectors. Supplemental security income program generate welfares to incapacitated adults and children who have restricted revenue and resources.
  • SIDBI delivers indirect funding through banks, NBFCs, SFCs and other financial institutions.
  • SIDBI purposes to generate stability in the economic sector by firming credit flows and encouraging skill development.



SIDBI stands for Small Industries and Development Bank of India, that mostly emphases on the promotion, funding, and expansion of the micro, small and medium enterprises. It was established in 1990 with the chief objective of supporting the MSME sector by enabling them with cash flow. MSME gets help from bank in getting funds for business development, commercialization and marketing of products with innovative technologies. SIDBI proposes custom-made monetary products under several loan schemes and serve services to meet the demands of various business projects.

To be the main financial institution for small medium sector, SIDBI has devoted its means towards progression of an energetic MSME ecosystem. SIDBI’s initiatives have remained aligned to the national goals of poverty alleviation, employment generation, lighting entrepreneurship and fostering competitiveness in MSME sector.

Modes of Finance

There are three mode of financing,
  • Direct finance: In the form of assistance to MSME sector in term loan and working capital.
  • Indirect finance: The indirect assistance to core lending institutions comprising banks, state level financial institutions, etc. having an extensive network of divisions all over the country. The main purpose of this scheme is to upgrade the credit flow in MSME sector.
  • Micro finance: This scheme provides micro finance to small business persons for business establishment.

Main purpose of SIDBI

The foremost functions of SIDBI are:
  • To assist financial institutions in lending to small-scale industries to confirm their monetary health.
  • To offer direct loans to companies categorized in the small and medium enterprises sector.
  • To carry out marketing initiatives for small-scale industries on a global scale.
  • To offer venture funding possibilities for industries in the small and medium enterprises sector.
  • To help in promotion of employment and upgradation of technology in the sector.
Benefits of availing a loan from SIDBI
  • To offer loans as per the requirement of the business and at attractive interest rates.
  • Benefit of a relationship manager to advice businessmen on the type of loan they should apply for.
  • No collateral or security for loans up to 1 crore.
  • To provide sufficient capital for the business.

Stand-Up India for Financing SC/ST and Women Entrepreneurs

Small Industries Development Bank of India (SIDBI) - Stand up India scheme facilitate bank loans between 10 lakh and 1 crore for set up a greenfield initiative to the minimum one women entrepreneur or reserved caste or tribe (SC/ST). These people must be indulge in manufacturing, trading or service sector. Shareholding and controlling stake (not less than 51%) must be required to be held by either a SC/ST or women entrepreneur if enterprise is non-individual.

Suitability for loan
  • Qualified applicant who is a women business person or schedule tribe, schedule caste must be age of more than 18 years.
  • Merely Greenfield project are qualified for finances under this scheme. The primary or new first time project of the person in manufacturing or services or trading sector will be indicated as Greenfield.
  • In circumstance of non-individual enterprises, 51% of the ownership and controlling stakes would be detained by either SC/ST and/or women entrepreneur.
  • Borrower must not be in defaulting to any financial institution or bank.

Documents Required For Registration

  • Application form
  • Filled in questionnaires
  • SSI / MSME registration certificate
  • Udyog aadhaar certificate
  • GST Registration certificate.
  • Detailed Project Report (DPR)
  • Enterprise details
  • Applicant ID address proof and others

Procedure to apply for loan

The arrangement which covers all branches of scheduled commercial banks will be accessed in three potential ways

  • Process_1

    Directly visit at a branch of bank

  • Process_2

    Through a specified portal link.

  • Process_3

    Chief district manager can also help for loan access.


The scheme is intended to take forward the Government of India’s ‘Make in India’ movement with the purpose to help MSME to take part in the campaign. This scheme was launched by a person named as Mr. Arun Jaitley (Former Minister of Corporate Affairs of India). The emphasis will be on recognized 25 sectors under Make in India plan with stress on supporting smaller businesses within the MSME sector.


To deliver soft loan on easy terms in the nature of term loan and quasi-equity to micro, small and medium enterprises to maintain the requisite debt-equity ratio for small medium enterprise.


  • Importance will be given to fresh enterprises in manufacturing or services sector.
  • Existing enterprises concern for expansion, transformation, skill upgradation or other. projects for growing their business can be surrounded
  • For equipment, finance size would be minimum 10 lakh & for others 25 lakh.

  • Longer repayment period up to 10 years including moratorium of up to 36 months
  • Minimum promoter contribution of 15% subject to maximum DER of 3:1

How to get loan under SIDBI Make in India Loan for Enterprises (SMILE)

The application procedure for SIDBI Make in India Loan for Enterprises (SMILE) scheme is elucidated in detail:

The qualified MSME initiative have to approach the concerned division for advance entitlement.

The applicant has to submit an application along with the required documents.

After verifying the details, the SIDBI will sanction the loan and amount will be credited to the beneficiary’s accounts.


Applicants should follow the steps mentioned below to apply for a loan from SIDBI,

    Visit the official website of SIDBI.

    Connect on tab applicant

    Enter the password with username

    The applicant has to enter the desired loan amount and choose a scheme

    The applicant has to enter personal details such as his name, username, email ID, mobile number, business address etc. Click on ‘register’ to complete the application process.

    After completion of application process, the entrepreneur will have to go through the following process:

    Accredited consultants empaneled with SIDBI will prepare the required documents. Based on the information and requirements indicated by the MSMEs, the consultants will draft a basic information memorandum. This document will contain all information relevant to the banks and rating agencies.

    The information memorandum is approved by the MSME entrepreneur and then submit to SIDBI.

    If needed, the proposal will be rated by a rating agency approved by the RBI.

    SIDBI will support the businessperson through each phase till the loan is administered. MSMEs have a much better chance of getting their loan sanctioned in time and can avoid unnecessary delays.

Startup SIDBI bank loan in India

SIDBI full form stands for the Small Industries Development Bank of India. SIDBI startup India loan by SIDBI bank for Enterprises was likewise launched by Mr. Jaitley. SIDBI loan is proposed to take forward the Government of India’s ‘Make in India’ mission and help MSMEs take part in the campaign. The attention will be on identified 25 sectors under the ‘Make in India' program with emphasis on financing smaller enterprises inside the MSME sector. Startup India loan scheme is required to profit roughly 13,000 enterprises, with work for almost 2 lakh people

The goal of the startup India loan scheme

The target of the Scheme is to give SIDBI loan, in the idea of quasi-equity and term loan on moderately soft terms to MSMEs to meet the necessary obligation value proportion for the foundation of an MSME as additionally for pursuing opportunities for development for existing MSMEs.

Functions of SIDBI

SIDBI plays out the accompanying functions towards the fulfilment of its targets which are coordination, development, financing and promotion.

  • It guarantees a steady flow of cash to MSMEs through different immediate, indirect and microfinance schemes.
  • It additionally gives money for innovation upgradation and modernization of the MSME sector.
    It likewise offers multiple services, for example considering renting, advertising activities, refinancing of Business loans, rediscounts on bills, and others identified with modern concerns.
  • It takes activities to make a balance in the financial sector by strengthening the MSMEs
  • Further, it likewise promotes employment-related industries and consequently keeps a check on urban migration
  • Finally, the loan amount will be dispensed to the registered bank account.

Eligibility Criteria for SIDBI loan
  • Emphasis will be on covering new undertakings in the assembling just as services sector
  • The emphasis will however, be on financing more modest undertakings inside MSME
  • Existing enterprises undertaking an extension, to make the most of new arising openings, as likewise attempted modernization, innovation up-gradation or different projects for developing their business will likewise be covered
  • Minimum SIDBI Loan Size - ₹ 10 lakh for Equipment Finance & Others: ₹ 25 lakh
Benefits of availing a SIDBI loan

Listed below are the critical advantages of profiting a SIBDI loan by SIDBI bank

  • Tailor-made: SIDBI plans loans as indicated by the necessities of your enterprise. If your requirements don't fall into the typical and conventional category, SIDBI will help reserve you in the correct manner.
  • Specialized Size:SIDBI Loans are modified by the size of the endeavor. So micro, small and medium enterprises can get various loans customized to suit their business.
  • Attractive Rates: SIDBI loan has given by SIDBI bank but yet it has a tie-up with numerous banks and worldwide financial organizations and can get concessional rates of revenue. The tie-ups incorporate KfW, World Bank and Japan International Cooperation Agency.
  • Assistance:SIDBI bank doesn’t simply give you a loan, it additionally offers your help and genuinely necessary guidance. Relationship managers assist entrepreneurs make the right decisions and give help till the finish of the loan process.
  • Risk and Growth Capital: Without weakening the responsibility for organization, business visionaries can obtain adequate cash-flow to meet development prerequisites.
  • Venture and Equity Funding::SIDBI bank has an entirely possessed subsidiary called SIDBI Venture Capital Limited that can give development capital in the form of equity through venture capital funds that are centered around MSMEs.
  • Government Subsidies - Take preferred position of different plans that have concessional rates and relaxed terms offered by the Government. SIDBI bank has a wider understanding and in-depth knowledge of SIDBI loans and plans accessible and can assist you with settling on the best choice for your organization. Transparency - The process and rate structure is straightforward. There are no concealed charges.
Steps to apply for SIBDI Loan
  • Visit the official site of SIBDI
  • Click on the ‘Borrower’s Corner’ tab.
  • Enter your username and secret key.
  • The candidate needs to then enter the desired loan amount and pick a scheme.
  • The candidate needs to enter individual details, for example, his/her name, username, email ID, mobile number, place of work, state, locale, etc. Click on ‘register’ to finish the application process.

Services offered by NeuSource

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  • Trademark Filling
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  • Startup Recognition under DPIIT
  • Startup India Portal Registration
  • GeM Portal Registration
  • Startup Consulting
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  • 59 minutes MSME Loan Application Filling
  • Video Pitch for Startup Recognition
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A guide to small scale industries for being a part to national wealth.

  • Define SIDBI loan?

    SIDBI refers to Small Industries Development Bank of India which assist in the development promotion and finance of micro, small and medium enterprise sector. This loan provides financial assistance to MSME through their various loan schemes.

  • What are the useful services from SIDBI for the purpose of loans?

    They provide guidance to existing and new entrepreneurs and make the entrepreneurs aware of the different schemes available from SIDBI.

    They also educate MSMEs on the benefits and subsidies under government schemes.

    They provide debt counselling for loan applicants and prepare the basic information memorandum.

    They help in responding to queries raised by banks.

  • Is SIDBI a subsidiary of the reserve bank of India?

    SIDBI is not a subsidiary of RBI as it’s listed under the reserve Bank of India and the department of financial services. In fact, State bank of India, Life Insurance Corporation and the government of India are the largest stakeholders in SIDBI.

  • Is the credit score of the individual taken into consideration when applying for a SIDBI loan?

    No, the credit score of the individual or partners are not taken into consideration.

  • Are mudra loans offered by SIDBI?

    Yes, mudra loans are one of the loan products offered by SIDBI.



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