SMEs 1




Functions meant to help SME’s:

           The main functions of SIDBI are;

  1. Refinance Assistance.
  2. Direct Assistance.
  3. Bills Schemes.


Refinance Assistance-

  1. Seed Capital Scheme- SIDBI provides seed capital scheme to technically or professionally qualified entrepreneurs. This scheme enable the entrepreneurs to meet the gap in minimum promoters contribution or in equity.
  2. Single Windows Scheme- New enterprise as well as managed undertaking & potentially viable sick units undertaking rehabilitation scheme can get the benefit of single window scheme.
  3. Provision of Term Loan (General Scheme)- Small-scale industrial units , artisans, village & cottage industrial units in the tiny sector & small road transport operator are extended financial assistance by way of refinance through primary lending institutions.
  4. Scheme for tourism related activities- SIDBI provides finance for setting up tourism up tourism related activities, such as cultural centres, development of amusement parks, restaurants etc.
  5. Equipment refinance scheme- This scheme is operated through SFCS / SIDCG. It is for existing well performing SSI units for the purchase of certain machinery/equipment etc.
  6. Other refinance schemes-
  7. Scheme for loomer entrepreneurs.
  8. Special scheme for ex-serviceman etc.
  9. National equity-fund scheme.
  10. Scheme for setting up industrial estate.
  11. Scheme for hotel & restaurant project.


Scheme for Direct Assistance:
ISO 9000 Scheme- This scheme enables the SSI units to meet the expenses on consultancy, documentation, advertisement, certification fee required for obtaining ISO 9000 certification.

Project finance Scheme-  SSI operated for setting up new units. Preference is given to those units with export oriented, import substitution etc. the project cost should not be less than 75 lakhs.

Scheme for foreign currency-  The project should be preferably export oriented. For the time being, the foreign currency loans are extended only in US$ & German DM.

Scheme for Specialised Marketing Agencies-  The purpose is to set up new show rooms & for renovation, expansion of existing show rooms & acquisition of sales vans for marketing products of SSI cottage & village industries.


Bill Schemes:

  1. Bills rediscounting scheme (BRS): SIDBI rediscounts the bills that were earlier discounted by commercial banks.
  2. Direct discounting schemes (DDS): In order to help SSI units to realize their sales proceeds of capital goods/equipment & components/sub assemblies/intermediate, SIDBI directly discounts bill arising out of these transaction.


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