SIDBI
SMILE
SIDBI Make in India Soft Loan Fund for Micro, Small and Medium Enterprises
Term loan generally up to Rs 1 crore for plant & machinery, repayable in up to 60 months including moratorium, with a soft-loan (quasi-equity) component funding part of the promoter contribution — 10% of project cost / Rs 20 lakh (general) rising to 15% / Rs 30 lakh for SC/ST/PwD/Women-promoted units holding a >=51% stake.
This programme has 2 parts, and each is applied for separately — with its own eligibility and its own money. They are set out below in order.
SIDBI Make in India Soft Loan Fund for Micro, Small and Medium Enterprises
Term loan generally up to Rs 1 crore for plant & machinery, repayable in up to 60 months including moratorium, with a soft-loan (quasi-equity) component funding part of the promoter contribution — 10% of project cost / Rs 20 lakh (general) rising to 15% / Rs 30 lakh for SC/ST/PwD/Women-promoted units holding a >=51% stake.
Who qualifies
Udyam- and GST-registered MSMEs in manufacturing or services, in existence for at least 3 years with a satisfactory financial position and no record of default, investing in plant & machinery. Emphasis on the 25 Make in India sectors and on smaller enterprises.
- Instrument
- Debt / term loan
- Issued by
- SIDBI
- Coverage
- All India
- Launched
- 2015
What it is worth
₹10 lakh – ₹1 croreINR (term loan facility)
Per the current SIDBI product page, generally up to Rs 1 crore (Rs 100 lakh); higher amounts considered subject to the bank's guidelines. For investment in plant & machinery purchased from OEMs. Competitive interest as per the SIDBI sanction (a specific public rate is not stated on the current official page; older secondary sources cited ~9.25-10% p.a. — treat as indicative only).
- In certain cases
10%% of project cost (soft-loan / quasi-equity component)
Capped at Rs 20,00,000
General category: soft loan funding up to 10% of project cost, capped at Rs 20 lakh, to help meet the promoter-contribution / debt-equity gap. The soft loan is quasi-equity for the first 3 years, then converts to a secured term loan.
- In certain cases
15%% of project cost (soft-loan / quasi-equity component)
Capped at Rs 30,00,000
Enterprises promoted by SC / ST / Persons with Disability / Women holding a controlling stake of at least 51%: soft loan up to 15% of project cost, capped at Rs 30 lakh (now modelled via the special_category_promoter_shareholding_percent >= 51 requirement).
How applying runs
- preliminaryApproach the nearest SIDBI branch or apply online via SIDBI's portal / Udyami Mitra for a preliminary discussion.
- applicationSubmit the SMILE application with promoter/guarantor bio-data, net-worth statement, Udyam and GST registrations, and financials.
- appraisalSIDBI appraises business viability, the 3-year track record, repayment capacity, sector eligibility and financial projections.
- disbursementOn sanction, the facility is credited to the enterprise's registered business account.
Worth knowing
- Current official terms (sidbi.in product page): facility generally up to Rs 1 crore; repayment up to 60 months including eligible moratorium; MSME in existence at least 3 years with satisfactory financials; mandatory Udyam and GST registration; for investment in plant & machinery from OEMs.
- Soft-loan / quasi-equity component funds part of the promoter contribution (10% / Rs 20 lakh general; 15% / Rs 30 lakh for SC/ST/PwD/Women with >=51% stake), converting to a secured term loan after 3 years. Sourced from secondary references describing the 2015 SMILE design — confidence Medium.
- Financial-appraisal parameters (not modelled as fact-fields): maximum debt-equity ratio 3:1; minimum promoter contribution 15%; satisfactory financial position.
- Term loans up to Rs 2 crore may be covered under CGTMSE; an upfront fee of around 0.50% of the loan amount applies.
- Loans cannot be used to repay earlier / existing loans (use-of-funds restriction).
- SIDBI has restructured its product pages; the original 2015 SMILE also covered NEW units (the soft loan helped new units meet the equity gap), whereas the current page states a >=3-year existence requirement. Modelled to the current page; the new-unit history is noted. Confirm the live sanction terms (interest rate, exact ceiling) directly with SIDBI.
SMILE Equipment Finance (SEF)
Equipment finance from a Rs 10 lakh minimum (capped maximum) for plant & machinery and need-based civil works, repayable in up to 72 months including moratorium, with lower promoter contribution via a contactless platform.
Who qualifies
Udyam-registered MSMEs in manufacturing or services, in existence for at least 3 years with a satisfactory financial position and no default, seeking finance for plant & machinery / movable fixed assets / need-based civil construction. Applied for separately via SIDBI's contactless machinery-loan platform.
- Instrument
- Debt / term loan
- Issued by
- SIDBI
- Coverage
- All India
What it is worth
From ₹10 lakhINR (minimum facility; maximum capped, ceiling unspecified)
Minimum loan Rs 10 lakh, with a capped maximum (ceiling not publicly specified — Needs verification). For investment in plant & machinery, movable fixed assets and need-based civil construction. Interest 'as per SMILE'. Lower promoter contribution and quicker dispensation via a contactless machinery-loan platform.
How applying runs
- applicationSubmit the separate SEF application via SIDBI's contactless machinery-loan platform.
- appraisalSIDBI verifies the 3-year track record, financial position, and the equipment quotation / proposal.
- disbursementOn sanction, the facility is disbursed for the equipment / capex purpose.
Worth knowing
- Maximum repayment period not more than 72 months including moratorium (loan term, not a benefit field).
- Maximum loan ceiling not publicly specified in available sources — Needs verification.
- 'Satisfactory financial position' is an appraisal judgement, not modelled as a fact-field.
Sources
Every figure and condition above is traceable to a government document. Scheme terms change — if this page and the source disagree, the source is right, and we want to know.
Current SIDBI SMILE terms: facility generally up to Rs 1 crore; repayment up to 60 months incl. moratorium; MSME in existence >= 3 years with satisfactory financials; mandatory Udyam + GST; investment in plant & machinery from OEMs; targets the 25 Make in India sectors
https://www.sidbi.in/files/SMILE-Brochure-copy.pdf · retrieved
SMILE launched FY2015-16 as a Rs 10,000 crore SIDBI fund under Make in India
http://old.sidbi.in/SMILE.php · retrieved
Soft-loan component 10% of project cost capped Rs 20 lakh (general) / 15% capped Rs 30 lakh for SC/ST/PwD/Women with >=51% controlling stake; quasi-equity converts to secured term loan after 3 years; 0.50% upfront fee; cannot repay earlier loans
https://www.indiafilings.com/learn/sidbi-make-in-india-loan-for-enterprises-smile/ · retrieved
DER max 3:1, promoter contribution from 15%, CGTMSE cover for term loans up to Rs 2 crore, Udyam and GST registration required, no default record required
https://www.compliancecalendar.in/learn/sidbi-smile-scheme · retrieved
SEF eligibility (MSME >= 3 years, satisfactory financials), eligible expenditure (plant & machinery / MFAs / civil construction), tenure <= 72 months incl. moratorium, minimum Rs 10 lakh, separate SEF application via contactless platform
https://uploads-ssl.webflow.com/60acf27ecad9bf4647b4f047/60e2ddeb6c558dc645f8b21a_SIDBI_direct_finance.pdf · retrieved
Last verified · More debt / term loan programmes
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