What is Small Industries Development Bank of India| SIDBI - Introduction | Features | Objectives | Functions


Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities

Features of SIDBI

  • Financial Institute for Promotion of SIDBI
  • Sustainable Development
  • Advisory Function
  • Services to MSMEs
  • Achievement of National Goals
  • Different forms of Finance
  • Digital Initiatives

Financial Institute for Promotion of SIDBI

SIDBI is established to provide short term and long term finance to the MSMEs. It provides refinance to Banking and Non-banking Financial Companies to increase the supply of credit to MSMEs. SIDBI cater to the specific needs of Indian MSMEs that are not fulfilled through traditional sources of finance.

Objectives of SIDBI

  • To Understand the Performance of the MSME Sector.
  • To Study the role played by SIDBI in developing the MSME Sector from various angles.
  • To Understand the problems of MSMEs and suggestions for the mitigation of the same.
  • To upgrade technology and also undertaking modernization of small scale units.
  • To encourage employment oriented industries.

Functions of SIDBI

  • To ensure the financial health of small-scale industries in the Small and Medium Enterprises (MSME) sector, aid financial institutions (cooperation and commercial banks) lending to them.
  • SIBDI direct loans are available to companies classified as Small and Medium Enterprises (MSME).
  • On a global scale, carry out marketing initiatives for small-scale industries.
    Provide opportunities for venture funding for industries in the Small and Medium Enterprises (SME) sector.
  • Promotion of employment and technological advancement in the sector.
  • Provide job opportunities for people who want to work in the industry.
  • Loans are available for the development and upkeep of small-scale industries in the country.
  • Small-scale industry marketing on a global scale.
  • Promotion of job-creating industries in the small-scale manufacturing sector.
  • Ensure that the small-scale industry is technologically advanced.
  • Ensures the financial stability of cooperative and commercial banks that lend to small businesses.
  • The promotion of venture capital funds.

Recommended Video

Thanks for taking out your time to read this blog . I hope you all must have gained some knowledge .

Thanks again.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Techy Khushi

#Youtuber, Content writer ,Website creator, Social media Account handler, Lecturer