The full form of SIDBI is Small Industries Development Bank of India. It was set up under a special act of the Parliament in 1988 and became operational on 2nd April, 1990. It is the principal financial body that governs and looks after the promotion, financing, and development of players in the micro, small, medium enterprises (MSME) sector.
SIDBI functions as a wholly-owned subsidiary of the Industrial Development Bank of India (IDBI)
SIDBI offers loans, micro financing facilities, and indirect assistance to MSMEs through refinancing of primary lending institutions (PLIs) and state-level financial institutions
SIDBI has collaborated with various credit rating agencies to develop composite indices and metrics for measuring the health and performance of the MSME sector
SIDBI manages to offer concessional rates on its loans and finance schemes as it has collaboration with various banks and apex financial bodies across the world
SIDBI offers various short-term lending products, such as bill discounting and rediscounting to eligible players
SIDBI has launched the Udyami Mitraportal to ensure easy access of financial and non-financial services to eligible players
Supports emerging enterprises in the MSME sector through its fund of funds route by investing in Alternative Investment Funds and Venture Funds
Through its credit plus initiatives, SIDBI offers credit, technology modernisation, marketing support, and skill-up support to new enterprises in the MSME sector
Acts as a facilitator and a nodal agency for various government schemes for the MSME sector
Offers factoring and leasing services to MSME players
It facilitates and oversees the creation of employment-generating opportunities in semi-urban areas to prevent migration of people to bigger cities and towns
It collaborates with commercial banks to ensure timely approval and release of loans and credit facilities to the MSME sector
Advantages of SIDBI
Provides skill-up support, entrepreneurial guidance, and technology modernisation in addition to looking after an MSME player’s funding needs
To promote the growth of micro and small businesses, SIDBI offers collateral-free loans of up to ₹1 Crore
Offers loans to small businesses at attractive interest rates, starting from 8.5% p.a.
It has an extremely transparent lending process. Plus, it doesn’t impose hidden charges.
SIDBI (Full Form: Small Industries Development Bank of India) is working relentlessly to promote the growth of the MSME sector and ensure that emerging businesses can survive without diluting their ownerships. It offers loans at attractive interest rates.
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