Small Industries Development Bank of India (SIDBI) was established on April 2, 1990, under an act of the Indian Parliament. It is a principal financial institution to facilitate and strengthen credit flow to Micro, Small and Medium Enterprises (MSMEs) and address both financial and developmental gaps in India. SIDBI, in its role as the apex Development Finance Institution for MSME sector has played a significant role in developing the financial services for MSME sector through various interventions including Refinance to Banks, Credit Guarantee programs, Development of the MFI sector, Contribution to Venture capital/AIF funds, MSME ratings, promoting digital lending ecosystem, etc.

The Bank fulfils its developmental mandate by providing policy inputs to the Government of India as well as introducing innovative solutions, technology, and processes for developing the MSME ecosystem in India. Besides, SIDBI has been collaborating with banking institutions, industry partners, multilateral and bilateral agencies, and other relevant stakeholders in accelerating low carbon transition of the MSMEs in line with the several policies and initiatives of the Government of India.

Main Objective of Financial Institution

Main objective of the Bank is to address both financial as well as developmental needs of MSME sector. To complement, it plays a significant role in developing the financial services for MSME sector through various interventions including Refinance to Banks, Credit Guarantee programs, Development of the MFI sector, Contribution to Venture capital/AIF funds, MSME ratings, promoting digital lending ecosystem, etc.

Besides, the Bank has proactively been working toward Energy Efficiency (EE) in MSMEs since 2005-06 as part of direct finance business using several LoCs from JICA, AFD, KFW etc. for energy efficient projects. Bank proposes to accelerate its efforts for MSME sector for their survival, growth and competitiveness in long run during prevailing climate related challenges.

Link for loan application form

https://onlineloanappl.sidbi.in/OnlineApplication/

Rate of interest

Rate of interest may vary, which at present could be as low as 3% (TIFAC-Srijan Scheme) to 9?sed on scheme guidelines and internal ratings.

KYC details

Schemes for EE/ RE/ MSME

I. 4E Financing Scheme
Purpose: To provide financial assistance to MSMEs engaged in the promoting energy efficiency in their operations and support Sustainable Development Goals
Minimum/Maximum loan amount: ₹10 Lakhs to ₹5 Crores
Rate of interest: 6.4% to 7.5%

II. Green Finance Scheme
Purpose: To provide financial assistance and support for green projects in the MSME Sector as aligned to nation’s commitment to reduce GHG (greenhouse gases) emissions
Minimum/Maximum loan amount: upto ₹20 Crores
Rate of interest: 7.6% to 9.4%

III. TIFAC–SIDBI Revolving Technology Innovation Fund (SRIJAN Scheme)
Purpose: To provide financial assistance for development, demonstration, up scaling, and Objective: commercialization of innovative technology projects by MSMEs
Minimum/Maximum loan amount: upto ₹2Crores
Rate of interest: upto 5%

IV. Partial Risk Sharing Facility (PRSF) Scheme
Purpose: Partial Risk Sharing Facility aims to trigger a sustainable market transformation by demonstrating successful implementation of Energy Efficiency project by using Energy Service Performance Contract (ESPC) approach by ESCO that would address financial institutions perceived risks in dealing with such end users and ESCOs. SIDBI provides guarantee to the extent of 75% of the loan sanctioned by enlisted banks/FIs for EE projects.
Minimum/Maximum credit guarantee: ₹10 Lakhs to ₹15 Crores