Refinance and institutional finance
A programme by Small Industries Development Bank of India (SIDBI) (Small Industries Development Bank of India)
SIDBI's largest channel: lending to banks, NBFCs and microfinance institutions so they can lend to MSMEs. Not something a business applies for.
At a glance
| Best for | Scheduled banks, small finance banks, NBFCs, microfinance institutions and fintechs |
|---|
About Refinance and institutional finance
Most of what SIDBI does never touches a business directly. It provides institutional finance to primary lending institutions — banks, NBFCs and microfinance institutions — for onward lending to MSMEs.
This entry is here so the picture is honest rather than because you can apply to it. If you borrow from a bank, a small finance bank, an NBFC or a microfinance institution, SIDBI money may well be behind your loan, but your counterparty is that lender and their terms are the ones that apply to you.
Who can apply
- Scheduled banks, under SIDBI's various refinance schemes
- NBFCs registered with the RBI as investment and credit companies, deposit taking or not, that finance micro and small enterprises, assessed in three tiers by external credit rating
- Microfinance institutions, which can also receive capacity building grants alongside a loan
Where to apply
Other SIDBI programmes
- Machinery Loan (EXPRESS and SPEED)Two direct term loans from SIDBI for MSMEs buying plant and machinery, applied for online.
- Project Funding (ARISE, Ubharte Sitaare and STHAPAN)Direct term loans for expansion, for export-oriented MSMEs and for setting up a new unit.
- Working Capital (Working Capital, SWIFT and STEP)Direct working capital facilities for MSMEs that do not already bank their working capital elsewhere.
- Green FinanceDirect term loans for MSMEs in the green value chain and for energy efficiency upgrades.
- Fund of Funds for StartupsSIDBI invests in SEBI-registered venture funds, which then invest in startups — the fund applies, never the startup.
- PRAYAASAffordable credit for informal micro-entrepreneurs, delivered at their door by partner institutions rather than by SIDBI directly.
- Production Linked Incentive Scheme for Telecom and Networking ProductsA Department of Telecommunications incentive scheme; SIDBI is its project management agency and runs the application portal.
- Production Linked Incentive Scheme for PharmaceuticalsA Department of Pharmaceuticals incentive scheme; SIDBI is its project management agency and runs the application portal.
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