SIDBI Make in India Soft Loan Fund for Micro Small & Medium Enterprises (SMILE), launched by Union Finance Minister on 18th of August 2015.
The detailed discussion on the Fund was delivered by SIDBI Branch Head in Coimbatore Last week in a Cluster Level Intervention Program in which VRNC is part of. The details of the fund is as follows.
Objective of SMILE:
To provide soft loan,in the nature of quasi-equity,and term loan on relatively soft terms to MSMEs to meet the required debt-equity ratio for establishment of an MSME as also for pursuing opportunities for growth for existing MSMEs
Target MSME Sector:
All the 25 the identified 25 sectors or other sectors as may be added, in the Make In India Programme. Deserving proposals from any other sector can also be assisted on merits.
New enterprises in the manufacturing as well as services sector. Existing enterprises undertaking expansion,modernization,technology upgradatio or other projects for growing their business will also be covered. Loans extended under the scheme cannot be used for repayment of earlier loans.
Minimum Promoters Contribution:
5% of project cost for projects up to Rs.1 crore and 20%for the rest