SIDBI is the principal financial institution for the promotion, financing and development of industry in the small scale sector. The Small Industries Development Bank of India provides direct credit schemes for Small scale industries and service sector units.
Details of the loans
Who is eligible for the loans?
· New or existing Small Scale Indutries units.
· Small Scale Industries unit graduating to medium scale, and
· Service sector units with an overall project cost not exceeding Rs.25 crore.
Type of Unit
The loans are given mainly to companies which are Private Limited or Public Limited companies. But SIDBI also provides loans to companies which are partnership firms, Societies, Trusts and even Proprietor ship type concerns in specific cases.
Type of Loans
The type of loans given to the SSIs as given above are majorly term loans (loans which have a fixed period in which the repayment has to be done). The bank also provides loans for working capital term loan requirements of the industries. On a case to case basis the SIDBI also supports the industries by providing Bill discounting support
Currency of Loan
The loans are disbursed both in Indian rupees and where needed in foreign currency also.