TNAU Agritech Portal :: Banking & Credit

Banking & Credit :: Frequently Asked Questions

13. What are the various modes in which SIDBI provide Assistance?

SIDBI mainly provide assistance as:

Indirect Finance (Refinance to and Rediscounting of bills (in respect of Small Scale Industries) of Primary Lending Institutions (PLIs) including banks and State level institutions. In respect of some institutions, line of credit is granted in lieu of refinance. Direct Finance Through several tailor-made schemes targeting specific groups or activities benefiting SSIs. Promotional and Developmental Services Loans, grants and corpus support are provided to Non-Governmental Organisations, technology institutions, management institutions, etc. to act as implementing agencies for SIDBI's developmental programmes. Micro credit finance is also extended to needy borrowers.

14. What are the broad areas of financial assistance to SSI from SIDBI?

Refinance and Line of Credit, Bills Financing, Invoice Discounting, venture financing, Project Financing, Factoring, Equity Assistance & Promotional & Developmental Assistance.

15. What is the interest rate structure of SIDBI?

Project related financing
1.	Rupee Term Loans [Under all schemes except PCR/PSCR, bills discounting schemes, resource support and cases assisted under joint / consortium / other similar arrangements].
a)	All schemes including Sellerwise Receivable Finance Scheme other than special schemes viz. ISO 9000	PLR minus 1.5 to PLR plus 2.5 i.e. 10.5 - 14.5
b)	ISO 9000 Scheme	PLR minus 0.5 to PLR
2.	Resource support /Assistance to NBFCs @@
a)	for period up to 1 year	10.0 -12.5
b)	for period above 1 year up to 2 years	10 - 13.0
c)	for period above 2 years	11 - 13.5
3.	Assistance in Foreign Currency
a)	Foreign Currency Term Loan	(i) 4% to 7% over 6 month USD LIBOR, (ii)3% to 6% p.a. over 6 month EUR O LIBOR
Note: (i) The rates, as above, would be applicable only in respect of such assistance which is eligible for coverage as per the scheme/prevailing guidelines. (ii) Within the above bands, interest rates linked to risk rating grades.

Source:http://www.sidbi.in