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 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

Loan Amount

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

Loan Amount

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

Direct Loans

• SMILE(SIDBI Make in India Soft Loan Fund for MSME)
• SMILEEquipment Finance (SEF)
• Loansunder Partnership with OEM (Original Equipment Manufacturer)
• WorkingCapital (Cash Credit)
• SIDBITrader Finance Scheme (STFS)
• ProductsUnder SMILE

Venture Capital

• Start-upsLifecycle along with SIDBI's interventions
• Fundsof Funds for Start-ups
• AspireFund
• IndiaAspiration Fund

Indirect Finance

• Assistancethrough Banks, NBFCs, and SFBs
• Assistanceto NBFCs
• RefinanceSchemes
• Assistanceto Small Finance Banks (SFB)

Micro-Lending

• Micro-LendingDevelopment Department (MLDD)
• ResponsibleFinance Initiatives
• BeyondMicrofinance

Targeted Sectors

The SMILEscheme focuses on 25 sectors with an emphasis on financing smaller enterpriseswithin 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 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.

Eligibility Criteria

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

Visit www.udyamimitra.in.

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

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