Working Capital (Working Capital, SWIFT and STEP)
A programme by Small Industries Development Bank of India (SIDBI) (Small Industries Development Bank of India)
Direct working capital facilities for MSMEs that do not already bank their working capital elsewhere.
At a glance
| Best for | MSMEs needing working capital, an overdraft or a short term loan against confirmed orders |
|---|---|
| Stage | Early revenue – Growth |
| Duration | STEP repays over up to 3 years including a moratorium of up to 6 months |
| Run with | IDBI Bank, City Union Bank, Yes Bank |
About Working Capital (Working Capital, SWIFT and STEP)
SIDBI offers working capital directly, and lets you choose which partner bank's platform runs the account. There are three products. The main working capital facility is a single window for term loan customers who also need working capital. SWIFT is an overdraft with a paperless digital journey. STEP is a working capital term loan for topping up net working capital or executing urgent confirmed orders.
What you get
- A working capital facility at an MCLR-linked rate, on a bank platform you choose from IDBI Bank, City Union Bank or Yes Bank
- On SWIFT, a paperless in-principle offer and no monthly or quarterly stock, book-debt or QIS statements, with a low processing fee
- On STEP, a short term loan with a moratorium of up to six months
Who can apply
- Working Capital: new and existing entities that do not already have a working capital facility from another bank or financial institution, with no defaults to banks or financial institutions
- SWIFT: existing entities with three years of operations, not already holding a working capital or overdraft facility elsewhere
- STEP: minimum three years of operations, or two for an existing SIDBI customer, with operating profit in the past two years, or one year for existing customers
How selection works: a credit assessment of the business and its banking record.
How to apply: use the Apply Now button on SIDBI's working capital page, which opens its online loan application.
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.
- 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.
- Refinance and institutional financeSIDBI's largest channel: lending to banks, NBFCs and microfinance institutions so they can lend to MSMEs. Not something a business applies for.
Everything about Small Industries Development Bank of India (SIDBI)