SMILE: a scheme, specially launched for MSMEs to empower them with financial solutions
SMILE: a scheme, specially launched for MSMEs to empower them with financial solutions
Puja Bhardwaj | StartupCity Magazine
SIDBI Make in 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.30 lakhs for SC, ST, and Persons with disability and Women
Rate of Interest
First three years: 9.15% to 9.35% per annum
4th year onwards: 11.70% – 12.70% per annum
Term Loan – On Relatively Soft Terms
Loan Amount
Minimum Rs.50 lakh for new enterprises
Minimum Rs.25 lakh 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)
- SIDBI Trader Finance Scheme (STFS)
- Products Under 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
- Refinance Schemes
- 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 funding for the expansion, commercialization, and marketing of their innovative technologies and merchandises.
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 the ‘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, the loan application form will expand asking for some mandatory information
After filling the application, click on Register. You would receive an account activation containing the username and password.
Log in 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
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