SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

SAFVAN BAHISH NAZIYA
SUJIN ANAS

INTRODUCTION
 The Government of India set up the SIDBI under a special Act of the Parliament in October 1989.  SIDBI commenced its operations from April 2, 1990 with its head office in Lucknow.  SIDBI has been setup as a wholly owned subsidiary of IDBI.  Its authorized capital is Rs.250 crore with an enabling provision to increase it to Rs.1000 crore.

 It is the apex institution which oversees, co-ordinates & further strengthens various arrangements for providing financial and non-financial assistance to small-scale, tiny, and cottage industries.

holder wealth and highest corporate values through modern technology platform” . Small and Medium Mission: Vision: financial and developmental needs of the MSME sector to make it strong. vibrant and globally competitive.MISSION & VISION Enterprises (MSME) sector with a view to contributing to the process of economic growth. to position SIDBI Brand as the preferred and customer .friendly institution and for enhancement of share . employment generation and balanced regional development” “To emerge as a single window for meeting the “To empower the Micro.

.AIM • Expansion of small scale sector and increase its share in industrial output. • Increase the efficiency of SSIs. • More employment generation in rural areas of rural India. • Development of rural areas where more than 70% of the population resides. • Increase the contribution of SSIs in export.

PURPOSE TO PROVIDE FACTORING SERVICE TO THE MANUFACTURERS IN SSI SECTOR SUPPLYING THEIR PRODUCTS ON CREDIT TERMS TO VARIOUS PURCHASERS IN THE DOMESTIC MARKET WITH A VIEW TO ASSISTING THEM IN THEIR RECEIVABLE MANAGEMENT AS ALSO PROVIDING THEM WITH FINANCE AGAINST THE RECEIVABLES FACTORED. .

OBJECTIVES Financing Promotion Development Co-ordination .

Government of India • Smt. Government of India • Shri Janki Ballabh: Former Chairman. Ministry of Finance. Department of Financial Services. State Bank of India . Ravneet Kaur: Joint Secretary.MANAGEMENT • Shri R.Malla: Chairman and Managing Director • Shri Rakesh Rewari: Deputy Managing Director • Shri Madhav Lal: Additional Secretary & DC (MSME).M. Ministry of MSME.

Tuteja: Former Secretary. Manivannan: Executive Director (IT-BPR) Life Insurance Corporation of India . Bajalia: Executive Director. R.MANAGEMENT • Shri M.K. • Shri B. IDBI Bank Ltd. Government of India • Shri T. Bank of India • Shri S. Balachandran: Former Chairman & Managing Director.

PRODUCTS & SERVICES • • • • • • • • • • Direct finance. Fixed deposit scheme Technology Upgradation & Modernization Fund Scheme {TDMF} Venture Capital Fund Scheme Seed Money Schemes National Equity Fund Scheme . Bills finance Refinance International finance Promotional & Development activities.

Scheme for specialized marketing agencies. against their loans granted to small scale units. Scheme for ancilaring / subcontract units. Scheme for existing Export Oriented Units(EOUs) to enable them to acquire ISO 9000 series certification. .. SIDBI had been providing refinance to State Level Finance Corporations / State Industrial Development Corporations / Banks etc. SIDBI’s direct finance schemes are: • • • • Scheme for expansion / diversification of small scale units.DIRECT FINANCE Since its beginning.

Bills Finance seeks to provide finance. components subassemblies etc. based on compliance to the various eligibility criteria. 1989. one of the parties to the transactions to the scheme has to be an industrial unit in the small-scale sector within the meaning of Section 2(h) of the SIDBI Act.BILLS FINANCE SCHEMES Bills Finance Scheme involves provision of medium and short-term finance for the benefit of the small-scale sector. To be eligible under the various bills schemes. norms etc as applicable to the respective schemes. to manufacturers of indigenous machinery. capital equipment. .

Regional Rural Banks .REFINANCE SCHEMES Refinance scheme is introduced for catering to the need of funds of Primary Lending Institutes {PLI} for financing small scale sector. SIDBI grants refinance against term loans granted by the eligible PLIs to industrial concerns for setting up industrial projects in the small scale sector as also for their expansion / modernization / diversification. Cooperative Banks. PLIs are SIDC. Under the scheme. Banks like commercial banks. SFC.

. • Special assistance to ex-servicemen.Schemes of re-finance assistence: • Scheme for SC-ST & physically handicraft persons • Composite loan scheme • Equipment refinance schemes. • Schemes for small road transport operators.

INTERNATIONAL FINANCE SCHEMES • The main objective of the various International Finance schemes is to enable small-scale industries to raise finance at internationally competitive rates to fulfill their export commitments. . • The financial assistance is being offered in US Dollars and Euro currencies. depending on the normal trade terms and credit period given to overseas buyers by exporters not exceeding 180 days. • The international finance is available from pre-shipment & post shipment credit. Assistance in Rupees is also provided to the needy borrowers. • Need based limit.

36 months 6.36 months 14 months .e.) 12 months .50 7.0 7.50 7.13 months 14 months . 2009 For Senior Citizens Interest (% p.f August 10. * w.00 7.0 .FIXED DEPOSIT SCHEME THE INTEREST RATE STRUCTURE FOR SIDBI FIXED DEPOSIT SCHEME OF SIDBI ARE AS UNDER: Time period Revised Annual Interest Rate %p.a.5 8.a.

SIDBI meets the varied developmental needs of the Indian SSI sector by its wide-ranging Promotional and Developmental (P&D) activities.PROMOTIONAL AND DEVELOPMENT ACTIVITIES As an apex financial institution for promotion. • Management Development Programmes. • Technology Upgradation Programmes. . The activities are as follows: • Entrepreneurship Development Programmes. financing and development of industry in the small scale sector.

TECHNOLOGY UPGRADATION & MODERNIZATION FUND SCHEME {TDMF} • This fund was setup in the year 1996 by the SIDBI with an initial capital of 200 cores. • For availing benefits under this scheme the unit have to prepare an estimate for modernization & submit it to SIDBI. • The sanction of funds is made depending upon the estimate submitted. • It was setup for the purpose of encouraging the existing small scale industrial units to modernize production facilities and adopt improved and updated technology for strengthening export capabilities. .

50.000 of total capital of the fund required.00.VENTURE CAPITAL FUND SCHEME • SIDBI is participating in the Venture capital fund set by public sector institutions as well as private companies to the extent of Rs. • The fund should be dedicated to financing small industry preferably the most risky one. .

5lakh is sanctioned to each project provided the prefect qualities under this scheme. • The equity capital loan to the extent of 2.NATIONAL EQUITY FUND SCHEME • In order to provide equity type assistance. . SIDBI is operation a National Equity Fund Scheme.

• Seed money is available through DIC { Direct Industry Centre } to those entrepreneur who are technically qualified but lack of own capital. • Hence.SEED MONEY SCHEMES • One of the constraints faced by Entrepreneurs is the lack of own resources to promote the minimum promoter contribution. SIDBI introduced seed money scheme for the benefit of entrepreneurs. .

• More than 35% share in India’s export .“SMALL” MAKES “BIG” DIFFERENCE • Small industries contributes more than 45% share in industrial production. • 80% share in employment generation. • Share in services is more than 65%.

through its direct assistance to small units and through its various developmental and supporting services. . discounting and rediscounting as well as financial assistance through indirect functions regarding lending to primary institutions. by the mode of refinancing.CONCLUSION In conclusion we can say that the SIDBI. encouraging small scale sector in Rural India.

Than Q 23 .

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