Small Industries Development Bank of India SIDBI
The SIDBI was established as a wholly owned subsidiary of Industrial Development Bank of India (IDBI) under a special Act of the Parliament 1988 and started its operations on April 2, 1990. It took over the responsibility of administering Small Industries Development Fund and National Equity Fund which were earlier administered by IDBI. It is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities. It is managed by a team of 10 Board of Directors. The authorised capital of the Bank is Rs. 1000 crore and the Paid up capital is Rs. 450 crore.
SIDBI READY TO FUND FOREIGN BUYS OF SMALL UNITS
Small Industries Development Bank of India (SIDBI) is ready to fund domestic MSMEs to acquire foreign companies.
“SIDBI are ready to fund small and medium companies to acquire foreign assets. SIDBI will be funding the acquisition value plus the facilitation charges. The money will come from the Rs 600-crore India Opportunity Fund that SIDBI have just launched”.
SIDBI MARKETING FUND FOR WOMEN (MFW)
The assistance under the Fund is available to women entrepreneurs and organisations involved in marketing of products manufactured by women entrepreneurs to increase their reach, both in domestic and international markets
SSI units managed by women entrepreneurs.
Marketing related service providers Organisations / units in the corporate / co-operative / NGO sectors which are providing support services like internet, trade related information, advertising, marketing research, warehousing, common testing centres, etc. to enterprises owned and managed by women.
Organisations / Associations / Women Groups / Marketing Consortia that have an exclusive marketing mandate and have, as their vendor base, a wide range of small and tiny units owned and managed by women entrepreneurs.
While the terms and conditions for sanction of assistance would be flexible, they would essentially depend upon the soundness of the management, track record of performance and viability of future operations.
Besides providing financial assistance as mentioned above, SIDBI could also consider, on a selective basis, developmental assistance by way of soft loans/grants for organising group activities and programmes such as trade fairs, exhibitions, buyer-seller meets, seminars, workshops, training programmes, etc. to promote marketing of products manufactured by women entrepreneurs.
To ensure better floe of credit to micro and small enterprises by minimizing the risk perception of financial institutions of Banks in lending without collateral.
security, a credit guarantee fun\d scheme for Micro and Small Enterprises was introduced by the government in August 2000
The scheme is being implemented by the Credit Guarantee Fund Trust for Micro and Small Enterprises, set up jointly by the Government of India and Small Industries Development Bank of India (SIDBI).The Government of India and SIDBI contribute to the corpus fund of the trust in the ratio of 4:1.
The scheme become operational and effect from January 1,2001.
All Scheduled Commercial Banks and regional rural Banks (Categorized under sustainable viability ) or such of those institute as may be directed by Government of India are eligible to become Member Lending Institute Under the Scheme.
The Scheme covers collateral free credit facility (term loan and/on working Capital) extended by eligible lending Institution to new and existing micro and small enterprises up to Rs100lakh per borrowing unit .The Guarantee cover provided is up to 75 % of credit facility up to Rs50 lakh with an incremental Guarantee of 50% of the facility above Rs50 lakh and up to Rs100 lakh (85 % of loan up to Rs5 Lakh provided to Micro Enterprises,80% for MSEs owned/operated by women and all loand to NER).One time Guarantee fee of 1.5% of credit facility sanctioned (0.75% for NER including Sikkim) and Annual Service Fee of 0.75% is collected from MLIs.
120 Banks and Institution.i.e,26 public sector and 19 private banks,63 RRBs,4 foreign banks and other institution including NSIC,NEDFI,SIDBI have joined this scheme as Member Lending Institutions(MLIs).
The scheme covers collateral free credit facility(term loan and/or working capital) up to Rs100 Lakh extended by eligible lending institutions to new and existing micro and small enterprises .
The scheme is operated through credit Guarantee Fund Trust for Micro and Small Enterprises,7th Floor SME Development Centre, Plot No.C-11,G-Block,Bandra Kurla Complex, Bandra (E),Mumbai-400051