SMILE Scheme

What is the scheme?

The flagship SMILE scheme stands for SIDBI Make in India Soft Loan Fund for MSME. This direct financial assistance identified 25 Make in India sectors and Small Enterprises that are given priority. New, as well as existing enterprises that are undergoing expansion, modernization, technology up-gradation or other projects for growing their business, are eligible under this scheme. The funding also covered under Credit Guarantee up to ₹ 2 Crs.

How much funding can a unit expect under the Scheme?

The loan is disbursed as Term Loan with a minimum of ₹ 25 Lakhs and up to a maximum 75% of the cost of the project.

Which units are eligible under this scheme?

New, as well as existing enterprises that are undergoing expansion, modernization, technology up-gradation or other projects for growing their business, are eligible under this scheme. Small Enterprise under MSME category is given priority over another category. The unit with Interest coverage of 1.50 times for the tenure of the loan with debt-equity of 3 is the basic financial parameters which are taken into consideration.

What are the loan tenure options?

Loan Tenure is dependent on Risk Profile and Project Implementation Schedule and cash flow of the unit. SIDBI offers extended tenure up to 10 years including moratorium up to 3 years to eligible units.

What kind of collateral and margin is required?

It is expected to cover the loan amount with 1.25 times of collateral. Proposals up to ₹ 2 Crs can be considered under Credit Guarantee. The Promoter’s margin is expected at 15% to 25%.