Purpose:

SIDBI offers loans for a wide range of purposes, including:

• Setting up new MSME units
• Expansion and modernization of existing units
• Working capital requirements
• Technology upgradation

• Marketing and export-related activities
• Infrastructure development
• Energy efficiency projects
• Equipment and machinery purchase

Loan Products:

SIDBI offers several loan products tailored to the specific needs of MSMEs, such as:

• Term Loans: Medium to long-term loans for capital expenditure, infrastructure development, and other business needs.
• Working Capital Loans: Short-term loans to meet day-to-day operational expenses and working capital requirements.
• Equipment Financing: Loans for the purchase of machinery, equipment, and other capital assets.
• Bill Discounting: Financial assistance against bills receivables to address cash flow gaps.
• Export Financing: Loans to support export-related activities, including pre-shipment and post-shipment finance.
• Receivable Finance: Financing against receivables and invoices to improve liquidity.
• Credit Guarantee: SIDBI also provides credit guarantees to MSMEs to enhance their access to credit from banks and financial institutions.
• Eligibility: The eligibility criteria for SIDBI loans may vary depending on the specific loan scheme and the applicant's profile. Generally, MSMEs registered under the applicable laws and guidelines of the Indian government are eligible to apply for SIDBI loans.
• Loan Amount and Tenure: The loan amount and tenure depend on various factors, including the purpose of the loan, the applicant's financial position, and the specific loan scheme. SIDBI loans may range from a few lakhs to crores of rupees, with repayment periods typically varying from a few years to several years.
• Interest Rates and Charges: The interest rates for SIDBI loans are determined based on factors such as the loan scheme, the applicant's creditworthiness, and prevailing market conditions. Interest rates may be fixed or floating and can vary among loan products and borrowers. Other charges, such as processing fees, documentation fees, and service charges, may apply as per SIDBI's guidelines and the specific loan scheme.