When you need a housing loan or personal loan you go to a retail bank or lender. Where do small and medium size companies go for funds when they need to expand their business or even set up a new unit. The first name that generally crops up is the Government of India run Small Industries Development Bank of India. SIDBI is responsible for developing and promoting industries in the small scale sector by providing them not only technical support and guidance but also funding in the form of loans too.
As per the SIDBI website, SIDBI was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be “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 industry in the small scale sector and for matters connected therewith or incidental thereto”
SIDBI helps small industries by providing them loans for various purposes including loans for new entrepreneurs, working capital loans, Micro enterprises loans etc
The funding from SIDBI covers a wide range of categories including special schemes for women and Micro Finance.