SIDBI SMILE — Make in India Soft Loan Fund for MSMEs
By Small Industries Development Bank of India (SIDBI)
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Quick Answer
Below-market soft loans from ₹10 lakh for MSMEs in manufacturing and services
- Funding amount
- From ₹10 Lakhs
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
Soft loans (quasi-equity, below-market interest) to new and existing MSMEs in manufacturing and select service sectors. Loan size: ₹10 lakh upward; repayment tenure up to 10 years including a moratorium of up to 3 years. Higher focus on new enterprises or those without a bank credit track record.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The Small Industries Development Bank of India (SIDBI) is the government-owned development bank for India's micro, small and medium enterprises. It was set up on 2 April 1990 under an Act of Parliament and is headquartered at SIDBI Tower on Ashok Marg in Lucknow, with offices in…
Learn moreBenefits & Funding
- Amount
- From ₹10 Lakhs
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
Soft loans starting from ₹10 lakh at below-market interest rates, repayable over up to 10 years with a moratorium of up to 3 years. No equity is taken — the loan is purely debt-based quasi-equity structured to support MSMEs that lack a formal bank credit track record. Beyond the financial support, SIDBI's backing can improve the enterprise's creditworthiness for future bank borrowings.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Obtain free Udyam Registration at udyamregistration.gov.in.
Obtain free Udyam Registration at udyamregistration.gov.in.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is SIDBI SMILE and who is it for?
SIDBI SMILE (Make in India Soft Loan Fund for MSMEs) provides below-market-rate soft loans to new and existing MSMEs in manufacturing and select service sectors, with special focus on enterprises lacking a formal bank credit history.
What is the loan amount and repayment period?
Loans start from ₹10 lakh with no upper limit specified. Repayment tenure is up to 10 years, including a moratorium of up to 3 years.
Is this a grant or a loan?
It is a soft loan (quasi-equity structure) — it must be repaid. However, the interest rate is below market, making it more affordable than conventional bank credit.
Does SIDBI take equity in my company?
No equity is taken. SIDBI SMILE is structured as debt, not equity investment. Your ownership remains unaffected.
Do I need existing collateral or a credit history?
SIDBI SMILE specifically targets MSMEs that lack a formal bank credit track record. Collateral norms are softer than regular bank loans.
How do I apply?
Applications are submitted through SIDBI's official portal at www.sidbi.in or through SIDBI's branch offices. You will need Udyam Registration, project report, and basic financial documents.
Sources
Data on this page is compiled from official program and provider references.
News
- IFC lends $500M to India's SIDBI to fund small industryapp.dealroom.co · 2 weeks ago
- IFC: SIDBI Secures USD 500M ECB India for MSME Financewansom.ai · 3 weeks ago
- SIDBI to raise $500 mn from global investor to boost MSME credit supportvccircle.com · 4 weeks ago
- Finmin secures $1 billion IFC funding for MSMEs; $500 million already released to Sidbim.economictimes.com · last month
- Government Boosts MSME Financing Through SIDBI and ECLGS 5.0caclubindia.com · 2 months ago
- Government Expands MSME Credit Access Through SIDBI, ECLGS 5.0; Direct Loan Portfolio Grows 36.8%indianmasterminds.com · 2 months ago
Source: Google News aggregated
