SIDBI Direct Credit Schemes for MSE

By | March 29, 2011

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 Medium Sector Enterprises

Details of the loans

Who is eligible for the loans?

  • New or existing medium sector enterprises, &
  • Service sector units with an overall project cost above Rs.25 crore and upto Rs.250 crore with Bank’s assistance not exceeding 50 crore.

Type of Unit

The loans are only to Medium Sector Companies which are Private Limited or Public Limited companies.

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. SIDBI also supports MSEs by providing Investment products such as debentures, optionally convertible cumulative preference shares, zero coupon bonds, etc.

Currency of Loan

The loans are disbursed both in Indian rupees and where needed in foreign currency also.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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