ED Presentation

Topic : SIDBI
Small Industries Development Bank of India (SIDBI) :

Set up on 2nd April 1990 under an Act of Indian Parliament, acts as the Principal Financial
Institution for Promotion ,Financing and Development of the Micro, Small and Medium Enterprise
(MSME) sector as well as for co-ordination of functions of institutions
Objective of SIDBI

The main objective of SIDBI is to offer loans to MSMEs to help in addressing the development
and financial gaps in the ecosystem of MSMEs.
The company aims to ensure that the MSME sector is globally competitive, vibrant, and strong.

Products offered under SIDBI

1. SIDBI Make in India Soft Loan Fund For Micro Small and Medium Enterprises (SMILE)

• The repayment tenure of the loan is up to 10 years (inclusive of moratorium period of 36

months).
• Attractive interest rates are offered.
• Priority will be given to services and manufacturing sectors.
• In the case of loans of up to Rs.2 crore, cover may be provided under the Credit Guarantee
Scheme.
2. SMILE Equipment Finance (SEF):

• The minimum loan that will be provided is Rs.10 lakh.

• Attractive interest rates are offered.
• The repayment tenure of the loan is up to 72 months (inclusive of moratorium period).
• Loans are provided to MSMEs that have been running for a minimum of 3 years. The
MSMEs must be financially stable as well.

3. Loans under partnership with OEM

• The maximum loan that may be offered may be up to Rs.1 crore.

• Loans are provided to MSMEs that have been running for a minimum of 3 years. The
MSMEs must be financially stable as well.
• The loan that is provided must be used for investment in Plant and Machinery.
• The repayment tenure of the loan is up to 60 months (inclusive of moratorium period).
• Attractive interest rates are offered.
4. SIDBI – Loan For Purchase of Equipment For Enterprise's Development (SPEED)

 Up to 100% financing may be provided.

 Loans are provided to MSMEs that have been running for a minimum of 3 years.
 The MSMEs must be financially stable as well.
 The repayment tenure of the loan ranges between 2 years and 5 years (inclusive of moratorium
period of 3 months to 6 months).
 The interest rate ranges between 9.25% p.a. and 10% p.a.

5. SIDBI - Loan For Purchase of Equipment For Enterprise's Development PLUS (SPEED PLUS)
 100% financing may be provided for the purchase of high-end machineries.
 Collateral need not be provided.
 The interest rate ranges between 8.80% p.a. and 10.50% p.a.
 The repayment tenure of the loan ranges between 2 years and 5 years (inclusive of moratorium period
of 3 months to 6 months).
6. Top up Loan For Immediate Purposes (TULIP)

1. The loan gets sanctioned within 7 days.

2. No collateral needs to be provided.

3. The interest rate ranges between 10.00% p.a. and 11.00% p.a.

4. The repayment tenure of the loan is up to 60 months (inclusive of a moratorium period of 6 months).

7. SIDBI Term-loan Assistance For Rooftop Solar PV Plants (STAR)

• Loans are provided to MSMEs to help in reducing the power bill.

• The loan amount may range between Rs.10 lakh and Rs.2.5 crore.

• The interest rate ranges between 9.10% p.a. and 10.20% p.a.

• The repayment tenure of the loan is up to 60 months (inclusive of a moratorium period that ranges between 3

months and 6 months).

8. SIDBI ASSISTANCE TO HEALTHCARE SECTOR IN WAR AGAINST
SECOND WAVE OF COVID19(SHWAS)
 100% finance may be provided.
 Competitive interest rates are offered.
 No processing fee is levied.
 The interest rate ranges between 4.50% p.a. and 5.00% p.a.
 The maximum loan amount that is provided is Rs.2 lakh.

9. SIDBI ASSISTANCE TO MSMES FOR RECOVERY & ORGANIC GROWTH DURING COVID19
PANDEMIC(AROG)
 100% finance may be provided.
 Competitive interest rates are offered.
 Low collateral needs to be provided.
 No processing fee is levied.
 The interest rate ranges between 5.50% p.a. and 6.00% p.a.
 The maximum loan amount that is provided is Rs.2 lakh
 .
 10. TIMELY WORKING CAPITAL ASSISTANCE TO REVITALISE INDUSTRIES IN
TIMES OF CORONA CRISIS (TWARIT)
• The interest rate is 8.25% p.a.
• The repayment tenure of the loan is up to 48 months (inclusive of a moratorium
period of 12 months).
• No prepayment penalty is levied.
Direct loan schemes offered by SIBDI
Loan Scheme
Smile Equipment Finance (SEF)
SIDBI Make in India Soft Loan Fund for
MSME (SMILE)
Working Capital (Cash Credit)
Loans under partnership with OEM
(Original Equipment Manufacturer)
SIDBI – Loan for Purchase of Equipment Up to 5 years including moratorium of
for Enterprise’s Development (SPEED) up to 6 months
SIDBI-Loan for Purchase of Equipment
for Enterprise’s Development Plus
(SPEED PLUS)
TOP UP LOAN FOR IMMEDIATE
PURPOSES (TULIP)
SIDBI TERM-LOAN ASSISTANCE FOR
ROOFTOP SOLAR PV PLANTS (STAR)
Loan Tenure Loan Amount
Minimum loan amount of Rs.10 lakh can Should have 3 years' experience in the
Up to 72 months
be availed
Up to 10 years, including 3-year
Between Rs.10 lakh and Rs.25 lakh
moratorium
Depends on the financial ability of the Existing customers under SIBDI or of
As per the terms and conditions
applicant
Up to Rs.1 crore with higher amounts
Up to 5 years with eligible moratorium
subjected to guidelines
New customers: Up to Rs.1 crore
Existing customers: Up to Rs.2 crore
Up to 5 years including moratorium of New customers: Up to Rs.2 crore
up to 6 months Existing customers: Up to Rs.3 crore
30% of existing exposure or 20% of net
Up to 5 years
sales subject to Max Rs.2 crore
Up to 5 years including moratorium of
Up to Rs.2.5 crore
up to 6 months
Eligibility Criteria
financial or business sector
New or existing enterprises
other banks can apply
Should have 3 years' experience in the
financial or business sector
3 years of existing business and profit-
making for at least 2 years
5 years of business experience making
profits for at least 3 years.
Minimum net sales should be Rs.5 crore
with no operating loss in the past two
years
You should have availed a SIDBI loan
scheme for at least a year and have
satisfactory financial records.
Should be able to show cash profit in
the previous financial year
Proof of 2 years of cash profit for
existing customers and 4 years of cash
profit for new customers, and
satisfactory financial records