A Beginning….

• SIDBI is Small Industries Development Bank Of India.

• Established in April 1990 under an Act of Indian

Parliament as the principal financial institution for :
• Promotion
• Financing
• Development of industry in the small scale sector
• Co-ordinating the functions of other institutions engaged
in similar activities.
• The business domain of SIDBI consists of small
scale industrial units, which contribute
significantly to the national economy in terms of
production, employment and exports.

• SIDBI's assistance flows to the transport, health

care and tourism sectors and also to the
professional and self-employed persons setting
up small-sized professional ventures.
• SIDBI retained its position in the top 30
Development Banks of the World in the
latest ranking of The Banker, London.

• In its approach, SIDBI has struck a good

balance between financing and providing
other support services.
 Mission

• To empower the Micro,

Small and Medium
Enterprises (MSME)
sector with a view to
contributing to the
process of economic
growth, employment
generation and
balanced regional
development

*R.M. Malla (C.E.O, SIDBI)

 Vision

• To emerge as a single window for

meeting the financial and
developmental needs of the MSME
sector to make it strong, vibrant and
globally competitive, to position SIDBI
Brand as the preferred and customer -
friendly institution and for
enhancement of share - holder wealth
and highest corporate values through
modern technology platform
 Range of Assistance
• Setting up of new projects
• Expansion, diversification, modernisation,
technology upgradation, quality
improvement, rehabilitation of existing
units
• Strengthening of marketing capabilities of
SSI units.
• Development of infrastructure for SSIs and
• Export promotion.
 Direct Assistance Schemes
• Project Finance Scheme,
• Equipment Finance Scheme,
• Marketing Scheme,
• Vendor Development Scheme,
• Infrastructural Development Scheme,
• ISO-9000,
• Technology Development & Modernisation Fund,
• Venture Capital Scheme,
• Assistance for leasing to NBFCs, SFCs, SIDCs and
resource support
Indirect Assistance Schemes
• SIDBI extends refinance of loans to small
scale sector by Primary Lending
Institutions (PLIs) viz. SFCs, SIDCs and
Banks.
• At present, such refinance assistance is
extended to 892 PLIs and these PLIs
extend credit through a net work of more
than 65,000 branches all over the country
 Channels of Assistance
SIDBI's financial assistance to small scale
sector have three major dimensions:
• Indirect assistance to primary lending
institutions (PLIs);
• Direct assistance to small units; and
• Development and Support Services
 Development And Support
Services
• Enterprise Promotion with emphasis on
Rural Industrialisation
• Human Resource Development to suit the
SSI sector needs
• Technology Upgradation
• Quality and Environment Management
• Marketing and Promotion and
• Information Dissemination.
 SIDBI DIRECTLY FINANCES
• SSI units for new/expansion/diversification/modernisation
projects.
• Marketing development projects which expand the
domestic and international marketability of SSI products.
• Existing well-run SSI units and ancillaries/sub-
contracting units/ vendor units for modernisation and
technology upgradation.
• Infrastructure development agencies for developing
industrial areas.
• Leasing and hire purchase companies for offering
leasing/hire purchase facilities to SSI units.
• Existing export-oriented units to enable them to acquire
ISO-9000 Series Certification
 SIDBI HELPS:
• SSIs to obtain credit rating from accredited credit rating agencies.

SIDBI PROVIDES FOREIGN CURRENCY LOANS TO:

• Import equipment by existing export-oriented SSIs and new units
having definite plans for entering export markets.
• Execute confirmed export orders by way of pre-shipment
credit/letter of credit and provides post-shipment facilities.

SIDBI's VENTURE CAPITAL FUND PROVIDES ASSISTANCE TO:

• Small scale entrepreneurs using innovative indigenous technology

and expertise.
Programmes implemented for Enterprise
promotion include:
• Micro Credit Scheme
• Rural Industries Programme
• Mahila Vikas Nidhi
• Entrepreneurship Development
Programme
 A group of entrepreneurs
receiving training under STUP.

*Skill-cum-Technology Upgradation Programme (STUP)

 SPECIAL PURPOSE FUNDS IN
SIDBI
• National Equity Fund
• Mahila Vikas Nidhi
• Mahila Udyam Nidhi
• Venture Capital Fund
• Technology Development
and Modernisation Fund
• Marketing Development
Assistance Fund with
special earmarked corpus
for women.
A. Refinance against term Interest on term loans Interest on Refinance
loans in respect of for fixed asets and (% p.a.)
projects/activities working capital
eligible for advances
assistance under (excluding interest
the Scheme tax) (% p.a.)

(i) Upto and inclusive of 12.0 9.0

Rs. 25,000
(ii) Over Rs. 25,000 and Not exceeding 13.5 10.5
upto Rs. 2 lakh
B. Refinance against term Interest on term loans Interest on Refinance (%
loans in respect of (excluding interest p.a.)
projects/activities tax) (% p.a.)
eligible for
assistance under
TDMF and ISO
9000 Schemes
(Applicable to all
eligible institutions)
(except RRBs)

(i) Upto and inclusive of 12.0 9.0

 Performance

Year Sanction Disbursement

1990-91 2410 1839

1991-92 2847 2028

1992-93 2909 2146

1993-94 3357 2672

1994-95 4706 3390

1995-96 6066 4801

1996-97 6485 4585

1997-98 7484 5241

 SIDBI's assistance to:

• (i) Tiny Units - about 89.2 per cent of the number of projects
assisted under Refinance Scheme during 1996-97 were tiny,
receiving assistance upto Rs. 5 lakh per project. The sanctions for
such projects accounted for 39.6% of the total amount of sanctions
in 1996-97 as against 36.0% during the previous year.
(ii) Women entrepreneurs - under various schemes assistance
amounting to Rs. 19.07 crores was given to 1067 women
entrepreneurs during 1996-97.
(iii) Backward areas - during 1996-97, projects enanating from
backward areas received assistance to the tune of Rs. 775 crores of
sanction which accounted for 37% of total assistance under
Refinance Scheme of SIDBI.
 Liberalisation effected

• Enhancement in the ceiling on loan amount of the Composite Loan

Scheme to Rs. 2 lakh from the earlier ceiling of Rs. 50,000/- to
ensure timely availability of term loan and working capital to the
small units.

• Scheme for Technology Development & Modernisation has been

expanded to cover non-exporting SSIs/ancillary units graduating out
of SSI sector for assistance under the scheme.

• Project outlay under the single window scheme has been gradually
raised from s. 30 lakhs to Rs. 100 lakhs. Simultaneously, the sub-
limits for working capital and term loan components has been done
away with.
 Main Schemes of SIDBI
• National Equity Fund Scheme
• Technology Development & Modernisation Fund
Scheme
• Single Window Scheme
• Composite Loan Scheme
• Mahila Udyam Nidhi (MUN) Scheme
• Scheme for financing activities
• Equipment Finance Scheme
• Venture Capital Scheme
• ISO 9000 Scheme
• Micro Credit Scheme
• New Schemes
(i) To enhance the export capabilities of SSI units.
(ii) Scheme for Marketing Assistance.
(iii) Infrastructure Development Scheme.
(iv) Scheme for acquisition of ISO 9000 certification.
(v) Factoring Services and
(vi) Bills Re-discounting Scheme against inland supply bills of SSIs.