1. When was SIDBI established?

SIDBI was established on April 2, 1990 under an act of Parliament. 

2. What is the business domain of SIDBI?

The business domain of SIDBI consists of small scale industrial units (Units in which the investment in plant and machinery does not exceed Rs.10 million). In addition, SIDBI's assistance flows to the transport, health care, hotel and tourism sectors, infrastructure, etc, and also to the professional and self-employed persons setting up small-sized professional ventures.

3. What are the objectives of SIDBI?

The preamble to the Small Industries Development Bank of India Act,1989 defines the objective of SIDBI as:

"the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing the industry in the small scale sector and for the matters connected therewith or incidental thereto."

In the SIDBI charter, four basic objectives are set out. They are:

• Financing
• Promotion
• Development
• Coordination

for orderly growth of industry in the small scale sector.

4. Which are the various schemes of SIDBI?

SIDBI schemes can be broadly be divided into four categories:

• Refinance Schemes
• Bills Finance Schemes
• Project Related Direct Finance Schemes
• Promotional and Development Schemes

For details about the schemes under these broad groups, please refer to our website under the Products and Services category.  

5. Which are the schemes specifically operated for SC/ST or Physically handicapped persons?

SIDBI extends Refinance Assistance for SC / ST or Physically handicapped Persons. The Scheme is operated by primary lending institutions such as State Financial Corporations and Scheduled Commercial Banks. For more details, you may please approach with details of the project to the nearest SFC or Bank in your region.

6. Whom we should contact for ISO 9000 Certification financial assistance scheme?

SIDBI's assistance for ISO 9000 Certification also is routed through primary lending institutions such as State Financial Corporations, Banks, etc. You may please approach them with details of the project for further guidance. You may also get in touch with the nearest Office of SIDBI for seeking guidance for availing assistance directly. 

7. What are the SIDBI schemes for professionals?

SIDBI's financial assistance for professionals is available through commercial banks, state financial corporations and state investment corporations. You may please approach your banker, SFC or SIDC located in your region for further details of the scheme of assistance.  

8. Please tell me more about SIDBI's General Refinance Scheme?

SIDBI operates the General Refinance Scheme through primary lending institutions, such as Commercial Banks, State Financial Corporations, State Industrial Development Corporations, etc. The assistance is extended for activities in the small scale sector and tiny sector. The proposals are extended assistance by the primary lending institutions if they satisfy the norms specified under the Scheme and SIDBI extends refinance assistance, in turn, to the PLIs.

9. Please tell more about expansion scheme?

Existing profit making units in small scale sector going in for expansion, technology upgradation and modernisation could be assisted by SIDBI both directly and indirectly (under refinance schemes). You may go through our Equipment Finance Scheme and Technology Development and Modernization Fund Scheme under Direct Finance Schemes and similar schemes under Refinance Schemes for further details

10. I am running an SSI unit. I will like to know the schemes available for financing?

SIDBI extends financial assistance to SSI both directly through its branches and indirectly through the Primary Lending Institution i.e. Banks, SFCs etc. You may kindly peruse our web site under Products and Services category for greater detail on the various schemes in operation.

11. What Schemes SIDBI operates for Women Entrepreneurs?

Assistance for Women Entrepreneurs is routed through SIDBI Refinance Schemes. A lower promoter contribution has been stipulated for Women entrepreneurs. Women entrepreneurs are also eligible to avail of seed capital assistance under Mahila Udyam Nidhi Scheme. Under promotional activities, assistance to needy women is extended through Mahila Vikas Nidhi Scheme.  

 12. Who can get assistance from SIDBI?

Generally, all forms of organisation viz., proprietary, partnership firms and limited companies can avail of various types of assistance from SIDBI. SIDBI assistance flows to export, industrial manufacturing, transport, health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures.

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?

Interest Rate Structure

Interest Rates

Prime Lending Rate (PLR) 12.00%

Source

http://www.sidbi.in