SMILE: a scheme, specially launched for MSMEs to empower them with financial solutions

SIDBI Makein India Loan for Enterprises (SMILE) Scheme was launched to carry forward the India Government's 'Make in India' campaign and shore up MSMEs to associate with the campaign.

The focal point of SIDBI incorporates micro, small, and medium enterprises (MSME). It is expected that this scheme would benefit around 13,000 businesses, with employment for almost 2 lakh persons.

Soft Loan – In the Nature of the Quasi

• Loan Amount

• 10% of the project cost, maximum Rs.20 lakh

• 15% of the project cost, maximum of Rs.30lakhs for SC, ST, and Persons with disability and Women

• Rate of Interest

• First three years: 9.15% to 9.35% per annum

• 4th yearonwards: 11.70% – 12.70% per annum

Term Loan – On Relatively Soft Terms

• Loan Amount

• MinimumRs.50 lakh for new enterprises

• Minimum Rs.25lakh for existing enterprises

• Rate of Interest

• First three years: 9.45% to 9.95% per annum

• 4th year onwards: 11.70% to 12.70% per annum

Products under SMILE

Direct Loans

• SMILE(SIDBI Make in India Soft Loan Fund for MSME)

• SMILE Equipment Finance (SEF)

• Loans under Partnership with OEM (Original Equipment Manufacturer)

• Working Capital (Cash Credit)

• SIDBITrader Finance Scheme (STFS)

• ProductsUnder SMILE

Venture Capital

• Start-ups Lifecycle along with SIDBI's interventions

• Funds of Funds for Start-ups

• Aspire Fund

• India Aspiration Fund

Indirect Finance

• Assistance through Banks, NBFCs, and SFBs

• Assistance to NBFCs

• RefinanceSchemes

• Assistance to Small Finance Banks (SFB)

Micro-Lending

• Micro-Lending Development Department (MLDD)

• Responsible Finance Initiatives

• Beyond Microfinance

Targeted Sectors

The SMILE scheme focuses on 25 sectors with an emphasis on financing smaller enterprises within the MSME sector. Some of them are given below:

• Automobiles

• Aviation

• Bio-Technology and Chemicals

• Constructions

• Defence Manufacturing

• Electrical Machinery and Electronic Systems

• Food Processing

• Media & Entertainment

• IT and BPM

• Leather and Mining

• Oil & Gas

• Pharmaceuticals

• Ports & Shipping

• Railways

• Renewable Energy

• Roads & Highways

• Space and Thermal Power

• Textiles & Garments

• Tourism & Hospitality

• Wellness Sectors

Objective

The ultimate goal of SMILE is to intensify the MSME sector by granting them financial reinforcement.  The bank supports MSME to avail of funding for the expansion, commercialization, and marketing of their innovative technologies and merchandise.

Eligibility Criteria

This scheme mainly targets new enterprises in the manufacturing and services sector. But that put the stress on financing smaller enterprises within MSME.

It is also for the existing enterprises, looking for financial support for undertaking expansion, technological growth, or other projects to give a boost to their business.

How to Apply

• Visit www.udyamimitra.in.

• Select Login and click on the tab of 'Applicant' and then choose 'New User'

• Thereafter, two options will appear asking for the expected loan amount, and the scheme you wish to apply under.

• Once you fill them out, the loan application form will expand asking for some mandatory information

• After filling out the application, click on Register. You would receive an account activation containing the username and password.

• Log in to the portal with new credentials, and a new form will appear asking about your business.

• For any query, contact the nearest SIDBI office about your business needs or visit the official website www.sidbi.in