Small Industries Development Bank Of India
Website Link: www.sidbi.in
Small Industries Development Bank Of India (SIDBI) was established in
April 1990, under an Act of Indian Parliament to serve as the Principal
Financial Institution for promotion, financing, and development of the Micro,
Small and Medium Enterprise (MSME) sector in India in addition to
co-ordination with institutions engaged in similar activities.
Financial support to MSMEs is provided by way of (a) Indirect finance /
refinance to banks / Financial institutions for onward leading to MSMEs
and (b) direct finance in niche areas.
"To work for best returns by investing in deserving entrepreneurial teams using a combination of capital, strategic mentoring, skills and our vast network of relationships.”
Indirect finance comprises refinancing support to banks, State Financial Corporations (SFCs). Bills rediscounting support to banks, assistance to Microfinance Institutions (MFIs) and resource support various institutions and agencies.
The Direct finance strategy is oriented to address the niche financial gaps like risk capital / equity finance, sustainable finance, receivable finance and service sector finance. SIDBI also provides traditional products like term loans, WC, etc.
The Institutions which have been established to support the above interventions are as under :
Is a full service Credit Rating Agency, registered with the Securities and Exchange Board of India (SEBI), and accredited by Reserve Bank of India (RBI) as an External Credit Assessment Institution (ECAI), for Bank Loan Ratings under BASEL-II norms.
Website Link: https://www.acuite.in
SIDBI has also floated entities such as Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provides guarantees
to banks for collateral-free loans extended to SME.
Website Link: https://www.cgtmse.in/
MUDRA provides refinance support to Banks / MFIs for lending to micro units having loan requirement upto ₹10 lakh.
Website Link: http://www.mudra.org.in/
Is a joint venture promoted by SIDBI and NSE. RXIL operates the Trade Receivables Discounting System (TReDS) platform as per the TReDS guideline issued by RBI.
Website Link: http://www.rxil.in
Is an Asset Reconstruction Company set up
by SIDBI alongwith leading Public Sector Banks. Its objective is to acquire
NPAs, inter-alia in MSME sector and catalyse speedy restructuring of potentially viable units and liquidation of unviable units,
so that productive use of the assets is maximized.
Website Link: http://isarc.in/