🏦 Small Industries Development Bank of India (SIDBI)

The Small Industries Development Bank of India (SIDBI) is the principal financial institution dedicated to the promotion, financing, and development of industries in the small-scale sector in India.

🎯 Role and Purpose

SIDBI plays a vital role in supporting the micro, small, and medium enterprises (MSMEs) by:

• 💰 Providing financial assistance

• 🧠 Offering advisory services

• ⚙️ Facilitating technology upgradation

It also coordinates the functions of other institutions that work in similar capacities within the MSME sector.

📝 Note: SIDBI is a government-owned financial institution.

🏛️ Ownership and Structure

• SIDBI was set up by the Government of India in 1990 under the Small Industries Development Bank of India Act, 1989.

• It is a wholly owned subsidiary of the Industrial Development Bank of India (IDBI), which itself was initially set up by the government.

🔑 Key Functions of SIDBI

1️⃣ Financing MSMEs

Provides funding to small and medium-sized enterprises to help them grow and scale their operations.

2️⃣ Promoting MSMEs

Actively promotes the creation and development of MSMEs through:

• 💼 Venture capital

• 💸 Term loans

• 🔄 Working capital financing

3️⃣ Coordinating with Other Institutions

Coordinates the work of other financial institutions supporting the MSME sector, ensuring that small industries have access to various forms of credit and support.