SIDBI Scheme

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)

Objective

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

 Eligible Borrowers
  • 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.

    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.

Consortia

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.

Development Assistance

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.

OBJECTIVE

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

SALIENT FEATURES

 

 

  • 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).  

ELIGIBILITY

              I.    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 .

            II.    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


 

GUARANTEES

Extent of the guarantee  The Trust shall provide guarantee as under :

All proposals for sanction of guarantee approvals for credit facilities above Rs. 50 lakh and upto Rs.100 lakh will have to be rated internally by the MLI and should be of investment grade. Proposals approved by the MLIs on or after December 8, 2008 will be eligible for the coverage upto Rs.100 lakh.
 
The guarantee cover will commence from the date of payment of guarantee fee and shall run through the agreed tenure of the term credit in respect of term credit / composite credit.   Where working capital alone is extended to the eligible borrower, the guarantee cover shall be for a period of 5 years or a block of 5 years, or for such period as may be specified by the trust in this behalf.

For Further details:- 

Small Development Bank Of India Website:-
www.msmefdp.net 
www.sidbi.in