Small Industries Development Bank of India (SIDBI) helps small scale industrial units by refinancing loans extended by primary lending institutions. It serves as a major financial institution for Micro, Small and Medium Enterprises (MSME) sectors. They help MSMEs get the funds that they need to grow, market, develop and commercialize the products that they create. SIDBI’s key initiatives over 25 years have been:
- Providing assistance of around Rs.5.40 lakh crores to the MSME sector
- Extending loans to lakhs of disadvantaged people, mostly women, through its Microfinance operations
- Supporting budding and existing entrepreneurs by taking initiatives to help them build their skills
Functions of Small Industries Development Bank of India (SIDBI)
- SIDBI refinances loans that are extended by financial institutions to small scale industries
- Helps in expanding marketing channels for the products of Small Scale Industries
- It offers services like factoring, leasing etc to the small-scale sector
- Promotes employment opportunities across small scale industries in semi-urban areas
- Initiates steps towards technology upgradations
- Enables credit flow as working capital or as term loans to Small Scale Industries