SIDBI Functions & Schemes

SIDBI Functions & Schemes

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SIDBI, or the Small Industries Development Bank of India, was founded as a statutory agency in 1988 by the Parliament's special act that took effect on April 2, 1990. SIDBI's headquarters are in Lucknow, UP. It makes up one among the 4 All-India Institutions, along with NHB, EXIM and the NABARD. Its main functions are:

• SIDBI originated as a single-window operation to fulfil its financial and developmental demands, as well as to strengthen, revitalise, and internationally competitive the MSME sector.

• SIDBI assists financial institutions in financing to small-scale companies in order for them to have a sound financial position, as well as providing non-financial aid to business owners by assisting them in obtaining raw materials.

• SIDBI organises surveys in particular geographical areas to assess the potential for establishing MSMEs in the region where they are present.

• In collaboration with commercial banks, SIDBI assists in growing business regions for the SSI sector goods in local and foreign markets.

• By offering a digital platform, SIDBI also hopes to increase shareholder value through current technology and innovative concepts. It also offers factoring and leasing services to domestic independent corporate entities in the small-scale sector.

• In conjunction with commercial banks, SIDBI also offers extra timely credit for working capital in addition to term loans for the SSI entities.

• SIDBI conducts measures to modernise and technologically upgrade current industrial units in order for them to evolve into future divisions that produce more income and jobs.

• SIDBI also serves as a nodal agency for several agencies of the Government of India, including:

                     - MSME Ministry

                     - Commerce and industry ministry

                     -- The Ministry of Textiles

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                     - - Food Processing Industry Ministry

SIDBI Schemes within the MSME Sector

• Direct Financing: which provides working capital assistance, term loans, and foreign currency loans

• Indirect Finance: support provided by banks through refinancing

• Microfinance: provides small-scale loans for credit on an urgent basis

• STFS (SIDBI Trader Finance plan): This plan provides wholesale retailers that have been in business for at least three years with financing

• SEF (SMILE Equipment Finance): Assists MSMEs in purchasing new equipment

• TULIP (Top-Up Loan for Immediate Purpose): The funding will be available in 7 days

• SPEED: Loan for the Purchase of Equipment for the Development of Businesses

• Loans made in collaboration with OEM (Original Equipment Manufacturer)

• The Working Capital Cash Credit Scheme: This scheme offers short-term financing