SIDBI Loan Schemes for MSMEs — Direct Finance Products (SMILE, SPEED and SPEED Plus for Machinery, STAR for Rooftop Solar, ARISE, Working-Capital and Green Finance), Eligibility, Rates and Documents, the 59-Minute and Udyam Assist Channels, and the Pandemic Schemes (SHWAS, AROG, SAFE, TWARIT) That Have Closed
Video Explanation & Insights
SHWAS scheme: SIDBI's 100% finance for healthcare units (2021, since closed)
5 videos on this topic
What SIDBI is and how it lends
The Small Industries Development Bank of India is the apex financial institution for MSMEs, set up in 1990. It lends in two ways: indirectly, by refinancing banks, NBFCs and micro-finance institutions that lend to small businesses (this is most of its book), and directly, through its own branches, to MSMEs that meet its scheme criteria — chiefly term loans for machinery, expansion and modernisation, with some working-capital products. Direct schemes are competitive because SIDBI's cost of funds is low and it prices on the unit's rating, but they are not for first-time businesses: most require three years of operations and profits.
SIDBI's standing direct-finance schemes
| Scheme | Purpose | Key terms (indicative — confirm on sidbi.in at application) |
|---|---|---|
| SMILE — SIDBI Make in India Soft Loan Fund for MSMEs | Quasi-equity and term loans for new units in manufacturing/services and for expansion of existing ones, with emphasis on 'Make in India' sectors | Soft loan (subordinated) plus term loan; minimum loan around ₹10 lakh for equipment and ₹25 lakh for others; up to 10-year tenure with moratorium; promoter contribution reduced by the soft-loan component |
| SPEED — SIDBI Loan for Purchase of Equipment for Enterprise's Development | Purchase of new machinery and equipment from identified OEMs | Up to 100% of machinery cost; loan up to ₹1 crore for new-to-SIDBI customers and ₹2 crore for existing customers; 2–5 year tenure; units with 3 years' operations, cash profits in 2 of the last 3 years |
| SPEED Plus | Larger machinery purchases from OEMs | Up to ₹2 crore (new) / ₹3 crore (existing); 5 years' operations, profitable, SIDBI rating; up to 100% financing |
| STAR — SIDBI Term-loan Assistance for Rooftop Solar PV Plants | Rooftop solar for own consumption | ₹10 lakh to ₹2.5 crore; up to 100% of project cost; 5-year tenure with moratorium; power-purchase savings as repayment |
| ARISE — Assistance to Re-energise Industrial Sector Enterprises | Modernisation, capacity addition and working capital for units affected by a downturn | Term loan and/or working-capital term loan; existing profitable units |
| Green finance (energy efficiency, cleaner production, EV, circular economy lines with World Bank/KfW/ADB) | Energy-efficient equipment, waste heat recovery, solar, EV fleets, ESG upgrades | Concessional lines from time to time; technical due diligence by SIDBI's partners |
| Working-capital assistance | Cash credit / WCTL alongside SIDBI term loans | For existing SIDBI borrowers; assessed on CMA data |
| SIDBI-Prayaas and micro-lending partnerships | Loans of ₹50,000–₹5 lakh through partner institutions | Reached through the partners, not SIDBI branches |
Who qualifies and what to submit
- •Constitution: proprietorship, partnership, LLP or company registered on Udyam as micro, small or medium; manufacturing and most services (trading is generally excluded from direct finance).
- •Track record: three years of operations for SPEED and most term-loan schemes (five for SPEED Plus), with cash profits in two of the last three years; new units go through SMILE or a bank with SIDBI refinance.
- •Financials: audited statements for three years, ITRs, GST returns, bank statements for twelve months, existing loan details; CIBIL and CMR ratings of the entity and promoters.
- •Project: quotations from OEMs (SPEED requires identified/empanelled manufacturers), a project report with cost of project and means of finance, the DSCR working (SIDBI looks for 1.5 and above), and the implementation schedule.
- •Security: hypothecation of the financed assets; collateral by negotiation or CGTMSE cover; personal guarantees of promoters.
- •Application: online at sidbi.in ('Apply for loan') or through the nearest SIDBI branch; the 59-minute portal (psbloansin59minutes.com) also routes eligible applications to SIDBI; Udyam Assist and the MSME 'Champions' portal link to SIDBI schemes.
The pandemic schemes in the videos — now closed
| Scheme | What it was | Status |
|---|---|---|
| SHWAS — SIDBI assistance to Healthcare sector in War Against Second wave | Up to ₹2 crore at 4.5–5% with 100% finance for units making or supplying oxygen, cylinders, concentrators, ventilators and medical infrastructure (2021) | Closed after the pandemic window |
| AROG — Assistance to MSMEs for Recovery and Organic Growth | Companion to SHWAS for other healthcare and COVID-related products, up to ₹2 crore at 5.5–6% | Closed |
| SAFE / SAFE Plus — SIDBI Assistance to Facilitate Emergency response | ₹50 lakh–₹1 crore at 5% for 4 months (SAFE Plus) and up to 5 years (SAFE) for MSMEs making COVID supplies — the 2020 video | Closed |
| TWARIT — Timely Working capital Assistance to Revitalise Industries in Times of corona | SIDBI's implementation of the ECLGS emergency credit line for its borrowers | Closed with ECLGS |
| Startup India loan (video) | Not a SIDBI product: bank loans to DPIIT-recognised startups, the Fund of Funds for Startups (managed by SIDBI, invested through AIFs) and the Credit Guarantee Scheme for Startups (CGSS) up to ₹20 crore | Fund of Funds and CGSS continue — see the startup funding pages |
SIDBI loans: questions we are asked
Direct schemes mostly need three years of operations; a new unit can use SMILE (with a stronger promoter profile) or a bank loan refinanced by SIDBI, Mudra or PMEGP.
For machinery term loans to rated, profitable units it is often comparable or cheaper, and SPEED finances 100% of the machine; for working capital a bank is usually simpler.
No. SHWAS, AROG, SAFE and TWARIT were pandemic schemes and have closed; the video is kept for reference.
The financed machinery is hypothecated; additional collateral depends on the rating, and CGTMSE cover is available for eligible loans within ₹10 crore.
sidbi.in → 'Apply for loan', a SIDBI branch, or through the 59-minute portal; keep the Udyam, financials, quotations and project report ready.
Yes — scheme selection, DPR and CMA in SIDBI's format, rating preparation, CGTMSE and state subsidy alignment, and follow-up to disbursement.