What is a SIDBI Smile Scheme and How to Apply? Its Benefits and Requirements

Starting a small business with new ideas and curating them all together is tough. What’s all the more tough is not having any big financial support. That’s when the SIDBI smile scheme comes into the picture.

So, what is a SIDBI smile scheme? Let’s break it to you in a simple way. Founded in the year 1990, SIDBI (SMALL Industries and Development of India) focuses on improving the MSME sector so that the economy of the country improves naturally.

A SIDBI Make in India Soft Loan (SMILE) is for Micro Small and Medium Enterprises. It is initiated by the Government of India to provide financial support by financing and providing loans to small enterprises that are within the MSME sector.

Now, this is like a golden ticket that takes small enterprises closer to their dream. This is where the Government pushes them and helps them financially to move forward. Isn’t it amazing? Now a lot of doubts will be going on in your mind. And you will be keen to learn more about the SIDBI smile scheme. Here, we have provided all the information you are looking for. Read the full article to get a clear view of the SIDBI smile scheme. But first, let’s check out the procedure to apply for the SIDBI.

How to Apply for a SIDBI Smile Scheme?

Many people are not aware of the procedure to apply for the SIDBI smile scheme. The process is not as tough as it looks. The procedure of a SIDBI smile scheme registration involves just five simple steps. All you need to do is read the below-mentioned steps carefully.

And follow the step-by-step procedure and then you are ready to go. The steps are as follows.

  1. First, go to the official website of SIDBI.
  2. After that, click on the “Borrower’s Corner Tab”. And then click on the

‘Online Loan Application’ option is shown on your screen.

  1. Now, enter your username and password. Once you log in, enter the loan amount you want and choose the scheme that goes well with your preferences.
  2.  After that, you will be asked to enter all the necessary details. Which includes your Full name, Username, Contact number, State, District, Business address, Email id, and other important information.
  3. Once you enter the necessary details click on ‘Register’.

And that’s it. Your application process is completed. Isn’t it simple? Now, we know the procedure to apply for a SIDBI loan. But we must know who can apply for it right? Let’s find that out.

Who Can Apply for the SIDBI Smile Scheme?

SIDBI scheme is not applicable for all businesses and enterprises. Only the people mentioned below can apply to avail of the SIDBI scheme.

  • The person, seller, or service provider who is qualified to be an MSME in the service or manufacturing sector.
  • Corporates and large companies that get raw materials from MSME.
  • MSMEs that are involved in manufacturing. Which is related to the sale of accessories, intermediates, parts, sub-assemblies, components, and services.

MSMEs that offer this to medium and large-scale units can apply.

Apart from this, there are certain SIDBI scheme requirements that one must check while applying. What are they?

What are the Requirements for the SIDBI Smile Scheme?

  • The unit or person who wishes to get the SIDBI smile scheme should not avail of a performance-linked Grant under the WB – GEF Project.
  • The unit must be audited by a technical agency.
  • The business should have been there for three years at least.
  • They should also provide a document of profit and loss statement for at least 2 years.
  • The proposal of the borrower must be in the range of C1 – C8.
  • The unit should go very well with the Environment.

Now, let’s look at the benefits you will be getting if you get a SIDBI Smile Scheme.

Benefits of SIDBI Smile Scheme

These schemes are solely dedicated to helping companies and businesses. Keeping their needs as a priority. SIDBI offers a wide range of benefits to small enterprises to get started with their business. The benefits include.

  • Customized loan requirements keeping in mind your needs which are suitable for the business owners.
  • Depending on the size of the business the loan is provided. So if you are a micro, small or medium enterprise there are loans for each of them individually that best suit your business.
  • The process is very transparent.
  • Since they have in-depth knowledge about all the SIDBI schemes they provide assistance and necessary advice in the loan process and the conditions of MSMEs. Which is best for your company as well.
  • Have a holistic approach and help in the capital growth of the companies.
  • With collaborations with work banks and the Japan International Cooperation Agency, they offer SIDBI concessional rates of interest.
  • There is also a possibility to offer loans. Up to a limit of Rs. 100 lakhs even without any security.
  • Provide various other schemes with discounted interest and terms that are comfortable enough. And also to help the small businesses and companies both in finance and in decision making.

Still have doubts and questions regarding the SIDBI smile scheme, documents required to apply for the SIDBI smile scheme, and the benefits you will be getting in the SIDBI smile scheme?

Experts at Udyami Helpline can help you, right now. udyamihelpline.com is a micro-advisory platform, wherein business experts and advisors from various niches come together to provide expert assistance to entrepreneurs and MSMEs.