1 Answers
Important features of SIDBI are as follows:
(i) Sustainable Development : SIDBI is working towards sustainable development of MSMEs in India. It helps MSMEs in creation of economic wealth while preventing ecological wealth of the country. It promotes culture of energy efficient and sustainable finance. It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.
(iii) Financial Institute for Promotion of MSMEs : SIDBI is established to provide short term and long term finance to the MSMEs. It provides refinance to Banking and NonBanking Financial Companies to increase supply of credit to MSMEs. SIDBI cater to the specific needs of Indian MSMEs that are not fulfilled through traditional sources of finance.
(iv) Advisory Function: SIDBI also works as an advisor and mentor for MSMEs. It helps MSMEs in expanding marketing channels for the products both in the domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.
(v) Forms of Finance : SIDBI offers the following facilities to its customers:
- Direct Finance
- Indirect Finance
- Micro Finance
(vi) Digital Initiatives:
(a) SIDBI Startup Mitra: It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors and banks at one platform. It helps in financing and development of new entrepreneurs. It also works as knowledge partner for State and Central Government.
(b) Udyami Mitra: This is the portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches. The entrepreneurs can select and apply for preferred banks, they can select suitable branch, track their application status an avail multiple loan benefits.
(vii) Achievement of National Goals : SIDBI helps in poverty alleviation and employment generation by financing MSMEs. It promotes entrepreneurship and fosters competitiveness in MSME sector. It promotes entrepreneurship among women and economically weaker section of the society.
(viii) Services of MSMEs : SIDBI provides different types of financial and non financial services through its associates and subsidiaries. These associates and subsidiaries are as follows:
- SIDBI Ventures Capital Ltd.
- Credit Guarantee Fund Trust for Micro and Small Enterprises
- SME Rating Agency of India Ltd.
- India SME Technology Services Limited
- India SME Asset Reconstruction Company Ltd.
- Micro Units Development & Refinance Agency