Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, acts as 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.

Business Domain of SIDBI

The business strategy of SIDBI is to address the financial and non-financial gaps in MSME eco-system. Financial support to MSMEs is provided by way of (a) Indirect / refinance to banks/FIs for onward lending to MSMEs and (b) direct finance in the niche areas like SIDBI Make in India Soft Loan Fund for MSMEs (SMILE), Risk Capital, Sustainable Finance, Start Up Support, Receivable Financing, Service Sector financing, Micro Finance including channelizing various government subsidies, etc. Further, SIDBI has been spearheading fund of fund support under Start Up India initiatives for the Government of India.

Further, SIDBI has been promoting energy efficiency and cleaner production in the MSME sector through various programmes viz. WB-GEF Project, 4E Scheme and Partial Risk Sharing Facility for promotion of ESCO-implemented energy efficiency projects by way of guarantees.

As on March 31, 2017, SIDBI has made cumulative disbursements of about Rs.4.86 lakh crore benefitting more than 350 lakh persons. By this way, SIDBI complements and supplements efforts of banks/ FIs in meeting diverse credit needs of MSMEs.

Development Outlook

In order to promote and develop the MSME sector, SIDBI adopts a ‘Credit Plus’ approach, under which, besides credit, SIDBI supports enterprise development, skill up-gradation, marketing support, cluster development, technology modernisation, etc., in the MSME sector through its promotional and developmental support to MSMEs. It is also operating Stand Up India programme for the Government of India.