SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises".(SMILE)

Friends, As you know during the lock down due to COVID-19 pandemic, our Honorable Prime Minister Shri Narendra Modi has given a slogan i.e. Vocal for Local and given his focus to make India self reliant.

To achieve the self reliant, the country should focus in Make In India. Unless and until our production/manufacturing power increases, we can't be self reliant.

There are many people in our country who are having knowledge and new ideas and wish to start their own business but due to lack of financial support restrict them for doing so.

Here I came with a new scheme of Government of India which is promoted by the SIDBI( Small Industrial Development Bank of India).

The name of the scheme is "SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises".(SMILE).

The objective of the Scheme is to provide soft loan, in the nature of quasi-equity and term loan on relatively soft terms to MSMEs to meet the required debt-equity ratio for establishment of an MSME as also for pursuing opportunities for growth for existing MSMEs.

• Emphasis will be on covering new enterprises in the manufacturing as well as services sector.The emphasis will however, be on financing smaller enterprises within MSME                                                                                                                                             
• Existing enterprises undertaking expansion, to take advantage of new emerging opportunities, as also undertaking modernization, technology up gradation or other projects for growing their business will also be covered                                                                                                                                                                         
• Minimum Loan Size - ₹ 10 lakh for Equipment Finance & Others : ₹ 25 lakh.

The loan will be repayable in 10 years including moratorium period of 36 months.

The minimum contribution of the promoters must be 15% subject to maximum DER( Debt Equity Ratio)3:1.

No collateral is required up to loan of Rs.2 cr and the loan must be covered under CGTMSE( Credit Guarantee Fund Trust for MSE).

The will be first charge over all the assets created under the project. The personal guarantee of all the promoters are required.

You can download the application form from the  website of SIDBI.