"Rs.1,22,000 Crore Target Has Gone To 1,33,000 Units" With SIDBI's focus on startups and Make in India funding, Kshatrapati Shivaji, Chairman and Managing Director of Sidbi, shares the way forward.

By Punita Sabharwal

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Entrepreneur India

To help MSMEs benefit from the Make in India programme, SIDBI launched SMILE scheme to provide soft loans in the nature of quasi-equity and term loans on relatively easier terms to these enterprises. With SIDBI's focus on startups and Make in India funding, Kshatrapati Shivaji, Chairman and Managing Director of the Small Industries Development Bank of India (Sidbi), shares the way forward.

What has been the SME disbursement in the last financial year by SIDBI?

There are two objectives we are serving. We are directly providing the funds. Last year my book size was around 60,000. This year it would be 75,000 plus. We try to increase the financial muscle of all the financial players. My target is the base, at the cutting edge level how much credit need you have and are you getting it or not, either directly or through other financial institutions. We have all the players like banks, NBFCs, microfinance. Taken together, I can tell you the microfinance institutions unless it is mudra where it is a SIDBI group of company. I can tell you that the target is 1,22,000, which is herculean. I ensure that my borrower and entrepreneur get what all they need and for that these are the initiatives which we are taking. Rs One lakh, 22 thousand crore target has gone to 1 lakh, 33 thousand units.

Any new initiatives/ policy you have taken for startups?

For startups we have Fund of Funds including venture funds. There is large number of venture capitalists in the country. We have signed an MoU with LIC. They are becoming co-investors in the Fund of Funds for the risk capital.

What is the status of collateral free loans which SIDBI has been providing?

This is the aim of credit delivery which we have been able to dispense through multiple guarantee mechanism. We provide loans up to 1 crore to MSMEs. Last year 25,000 crore was the cumulative guarantee to one lakh, 11 thousand people. Besides, there are functional based guarantee loans. Like mudra loan it gives guarantee trust. At Stand Up India there was another guarantee. For education there is education loan guarantee, factoring guarantee is there. I can tell you more than dozen broad major action is completed on the ground.

This article first appeared in the Indian edition of Entrepreneur magazine (July 2016 Issue).

Punita Sabharwal

Entrepreneur Staff

Managing Editor, Entrepreneur India

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

News and Trends

Union Budget 2025: Will FM Finally Offer Tax Relief to India's Crypto Ecosystem?

Among the demands and suggestions posed by the ecosystem players, the reduction of tax on virtual digital assets (VDA) and Tax Deducted at Source (TDS) remain a prime concern. The previous interim budget and union budget failed to provide any relief for domestic crypto investors.

News and Trends

Electric Vehicle Maker Euler Motors Secures USD 20 Mn to Transform Logistics Sector

The funding supports Euler Motors' mission to electrify India's commercial vehicle sector by scaling production, advancing next-gen EV R&D, and boosting growth of the Storm EV for logistics and e-commerce.

Leadership

From Elite Athletes to Tech Titans — Discover the Surprising $100-Million Habit That Leads to Extraordinary Success

Success comes from mastering focus, eliminating distractions and prioritizing what truly matters.