What is the full form of SIDBI?
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What is the full form of SIDBI?
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The full form of SIDBI Small Industrial Development Bank of India. It is a development financial institution in India. SIDBI is founded on 2 April in 1990 and headquartered in Lucknow and branches all over the country.SIDBI works under the government of India’s Department of Financial Services. SIDBI aim is to provide the business with renegotiating openings and momentary financing and to work as the principal monetary organization in the MSME (Micro, Small and Medium Enterprises) industry. The function of associations participating in related exercises is composed by SIDBI too.
Key features of SIDBI
1. SIDBI is one of the four RBI governed and monitored by All India banking institutions, the other three are IEB (India Exim Bank), NABARD & NHB.Yet, as of late NHB went under government control by taking over 51% stake.
2. SIDBI play a statutory role in the financial markets by credit extension and operation activities and serve long-term financing requirement of the industrial sector.
3. SIDBI is dynamic in the advancement of Micro Finance Institutions through SIDBI Foundation for Micro Credit and helps with broadening microfinance through the Micro Finance Institution (MFI) route.
4. Its advancement and improvement program centres around country endeavours advancement and business venture improvement
5. SIDBI gives Term Loan assistance to Banks, Small Finance Banks and Non-Banking Financial Companies.
6. It loans directly to MSMEs.
7. It supports export services.
8. It provides support to Small Scale Industries by discounting in bills.
9. It gives employment opportunities among SSIs.
10. SIDBI provides a loan to women and unprivileged people
Products offered by SIDBI
SIDBI provide 6 products under Direct Loans
1. SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE)
2. Loans under Partnership with OEM
3. Smile Equipment Finance (SEF)
4.Cash Credit
5. SIDBI Trader Finance Scheme (STFS)
6. Loan for Purchase of Equipment for Enterprise’s Development (SPEED)
SIDBI Indirect Finance Scheme
1. SIDBI provide Indirect Finance is to Banks, NBFCs, SFBs and MSMEs.
2. SIDBI support NBFCs which incorporate the loan organizations too that are enrolled with RBI help in giving monetary help to ventures in the MSME area
3. SIDBI support to the financially stable bank by the refinance schemes
4. SIDBI provides assistance to Small Finance Banks (SFBs) to reinforce the equity and asset base.
Advantage of SIDBI
1. Concessional financing costs
2. Majority of credits are Collateral Free
3. Credit and loans are customized
4. Specially designed subsidizing for MSMEs
5. Provide Subside on different plans
6. The process of funding is transparent
7. Provide Capital development for entrepreneurs
