Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
The business strategy of SIDBI has been reoriented towards filling up the financial and non-financial gaps in the MSME eco-system, Direct credit is provided to address financial gaps in niche areas like risk capital/ equity, sustainable finance to promote energy efficiency in MSME sector, receivable finance, services sector financing etc. These financial assistances are provided to complement and supplement the efforts of banks/FIs in channelizing more and varied credit to MSME sector.
SIDBI is also now laying greater thrust on providing refinance assistance to smaller banks and Non-Banking Finance Companies (NBFCs). Further, the Bank would also be providing technical assistance for capacity development of Regional Rural Banks (RRBs)/ Urban Cooperative Banks/ District Cooperative Banks (DCBs).
As regards the developmental gaps in MSME sector, SIDBI provides various types of non-credit assistance which include technology development, marketing, infrastructure, cluster development, skill development, entrepreneurship development, information and technologies etc.
SIDBI has brought in institutional solution and strengthened the eco-system for addressing thematic requirements of MSMEs. SIDBI’s subsidiaries and associates include SIDBI Venture Capital Ltd. (for venture capital), Credit Guarantee Fund Trust for Micro and Small Enterprises (for credit guarantee), SME Rating Agency of India Ltd. (for credit rating), India SME Technology Services Ltd. (for technology transfer) and India SME Asset Reconstruction Ltd. (for asset reconstruction).
Schemes of Assistance of SIDBI
Risk Capital Assistance
Receivable Finance Scheme
Trade Finance Scheme (Raw Material Assistance)
Construction Sector Entities
Secured Business Loan
International Finance Scheme
SIDBI Make in India Soft Loan Fund for Micro Small & Medium Enterprises(SMILE)