SMILE Scheme by SIDBI: Business Loan Guide

SMILE Scheme by SIDBI: Complete Business Loan Guide (2025)
The SIDBI Make in India Soft Loan Fund for Micro, Small and Medium Enterprises (SMILE) is a specialized financing scheme designed to support Indian MSMEs with easy credit access. Here's a comprehensive overview:

Key Features
Loan Offerings:

Term Loans: For capital expenditure

Working Capital: For operational needs

Composite Loans: Mix of both

Financial Parameters:

Loan Amount: ₹10 lakh to ₹25 crore

Interest Rate: 8.50% p.a. onwards (linked to MCLR)

Repayment Tenure: Up to 10 years (including moratorium)

Special Benefits:

Lower interest rates compared to regular business loans

Flexible collateral requirements

Quick processing (typically 15-20 working days)

Eligibility Criteria
Business Requirements:

Registered MSME under Udyam

Manufacturing or service sector enterprises

Minimum 3 years of operations (relaxed for high-potential startups)

Financial Parameters:

Minimum turnover ₹25 lakh for existing businesses

Satisfactory credit score (CIBIL 650+ preferred)

Positive net worth for larger loans

Eligible Business Purposes
Technology upgradation

Business expansion

Working capital requirements

New unit establishment

Equipment/machinery purchase