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SIDBI’S Role - MSMEs as Growth

Engine for our Economy

Greetings from
About SIDBI
Established under an Act of the Parliament in 1990, SIDBI is the Principal Financial
Institution engaged in promotion, financing & development of the MSME sector and
coordination of the functions of the various institutions engaged in similar activities.

Fund of Funds to support


start-up ecosystem

Direct lending to MSMEs Promotional &


through innovative lending Developmental activities to
models support entrepreneurs

Indirect lending through Trusted nodal agency for


Banks, SFBs, NBFCs, MFIs MSME oriented schemes
and New Age Fintechs of GoI
MSME eco-system - Subsidiaries & Associate Institutions

Propelling MSMEs towards success


Term Loan – General
(For greenfield and brownfield projects)

Purpose For setting up of new enterprise / expansion of existing facility by


way of acquisition of land, construction of building and acquisition of
Plant & Machinery/ Miscellaneous Fixed Assets
Loan 75% to 67% of the project cost
amount Min. loan amount – Rs.25 lakh
Promoters’ 25% to 33% of project cost
contribution
Interest rate MCLR linked rate

Repayment In the range of 5 to 10 years depending on the project.


period

Propelling MSMEs towards success


Working capital

Purpose Cash credit limit against hypothecation of stock and book


debts for taking care of day to day business expenditures.
Quantum of limit Rs.10 lakh minimum
Margin 25 - 30% against stock and book debts
Operational To be operated at City Union Bank / Yes Bank Ltd / IDBI Bank,
modality which will provide the banking platform. Sanction of CC limit,
monthly setting up of DP and monitoring / follow up will be
done at SIDBI.
Validity period On demand.

Propelling MSMEs towards success


Objective - To promote innovation, up-scaling, demonstration and
commercialization of new and innovative technologies.

Executing entities - SIDBI and TIFAC


Quantum of assistance - Assistance up to 80% of the total
project cost, which would normally be not more than 200.00 lakhs.
Higher assistance could be considered selectively based on innovation
content in the projects.

Promoter's contribution - Minimum 20% of the total


project cost
Interest rates – Max. 5% fixed p.a.
Project cost - Capital expenditure e.g. factory shed for the
project, plants & machinery, utilities, testing & quality control
equipment etc., Intangibles e.g. patents/ copy rights / R&D /
technology transfer fee / licensing / Marketing / brand building
expenses, Working capital margin, Pre-operative expenses,
Manpower cost, Contingencies / Any other heads required for the
project.

Eligibility - New / existing Indian MSME units.


CGTMSE

• Credit Guarantee Fund Trust for MSEs (CGTMSE) branded as UDAAN (set up in
2000), by Govt of India and SIDBI operates the Credit Guarantee Scheme (CGS)
for MSEs in respect of credit facilities up to Rs. 5 cr extended by member
lending institutions that are not backed / partially backed by collateral security
and / or third - party guarantees.
• Facilitating Collateral Free / Third Party Guarantee free loans to MSEs in
respect of credit facilities up to Rs. 5 cr.
• Encouraging financial inclusion through hassle free access to finance / credit.
• Create opportunities for MSEs for further economic development and obviates
the problem of MSEs to provide collaterals for loans.
• 75% to 85% extent of guarantee coverage. More than 100 MLIs.

Propelling MSMEs towards success


START UP
An entity shall be considered as a Startup:
i. Upto a period of ten years from the date of
incorporation/ registration, if it is incorporated as
a private limited company (as defined in the
Companies Act, 2013) or registered as a
partnership firm (registered under section 59 of
the Partnership Act, 1932) or a limited liability
partnership (under the Limited Liability
Partnership Act, 2008) in India.
ii. Turnover of the entity for any of the financial
years since incorporation/ registration has not
exceeded one hundred crore rupees
iii.Entity is working towards innovation,
development or improvement of products or
INCUBATION CENTRES
S No Name of the Incubator

1 Foundation for Innovation & Research in Science & Technology (FIRST)- IIT Kanpur

2 Institute Incubation & Innovation Council (I3C)- IIT Jammu

3 CIIE.CO (IIM Ahmedabad)

4 T- Hub Foundation (Technology Hub)

5 IIM Calcutta Innovation Park (IIMCIP)


6 IIT Madras Incubation Cell (IITMIC)

7 Foundation for Science Innovation and Development (FSID)- IISc Bengaluru

8 IIMB Innovations (NSRCEL) - IIM Bangalore

9 Society for Innovation & Entrepreneurship (SINE)- IIT Bombay

10 O-Hub (Odisha Hub)- Startup Odisha

11 CODISSIA Defence Innovation and Atal Incubation Centre (CDIIC)

12 Foundation for Innovation and Technology Transfer (FITT) - IIT Delhi

13 Kerela Startup Mission (K-SUM)

14 IIM Lucknow Enterprise Incubation Centre (IIML EIC)- IIM Lucknow

15 IRMA ISEED FOUNDATION - Institute of Rural Management Anand, Gujarat

16 WISE SNDT Women's University Incubation Centre, Mumbai


START UP PORTAL – INVESTOR
CONNECT

https://investorconnect.startupi
ndia.gov.in/for-startups/
.
rpshivam@Sidbi.in

9930181855
R Paramasivam
AGM Thank you
2nd Floor, Mayflower 'E'
Castle
72, Dr. Balasundaram Road,
Coimbatore - 641 018
SIDBI’S Role - MSMEs as Growth Engine for our Economy

@sidbiofficial sidbiofficial sidbiofficial

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