SMILE: a scheme, specially launched for MSMEs to empower them with financial solutions
Puja Bhardwaj | StartupCity Magazine
SIDBI Makein India Loan for Enterprises (SMILE) Scheme was launched to carry forward theIndia Government's 'Make in India' campaign and shore up MSMEs to associatewith the campaign. The focal point of SIDBI incorporates micro, small, andmedium enterprises (MSME). It is expected that this scheme would benefit around13,000 businesses, with employment for almost 2 lakh persons.
Soft Loan – In the Nature of the Quasi
10% of theproject 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 threeyears: 9.15% to 9.35% per annum
4th yearonwards: 11.70% – 12.70% per annum
Term Loan – On Relatively Soft Terms
MinimumRs.50 lakh for new enterprises
Minimum Rs.25lakh for existing enterprises
Rate of Interest
First threeyears: 9.45% to 9.95% per annum
4th yearonwards: 11.70% to 12.70% per annum
Products under SMILE
The SMILEscheme focuses on 25 sectors with an emphasis on financing smaller enterpriseswithin the MSME sector. Some of them are given below:
The ultimategoal of SMILE is to intensify the MSME sector by granting them financialreinforcement. The bank supports MSME toavail funding for the expansion, commercialization, and marketing of theirinnovative technologies and merchandises.
This schememainly targets new enterprises in the manufacturing and services sector. Butthat put the stress on financing smaller enterprises within MSME.
It is alsofor the existing enterprises, looking for financial support for undertakingexpansion, technological growth, or other projects to give a boost to theirbusiness.
How to Apply
Select Loginand 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 youwish to apply under.
Once youfill them, the loan application form will expand asking for some mandatoryinformation
Afterfilling the application, click on Register. You would receive an accountactivation containing the username and password.
Log in theportal with new credentials, and a new form will appear asking about yourbusiness.
For anyquery, contact the nearest SIDBI office about your business needs or visit theofficial website www.sidbi.in