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The Full form of SIDBI is Small Industries Development Bank of India. SIDBI is an independent financial institution which is established for the growth and development of micro, small and medium-scale enterprises (MSMEs) in India. It was set up under the Indian Companies Act, 1956 on 2nd April 1990 as a wholly owned subsidiary of Industrial Development Bank of India (IDBI). SIDBI operates under the Department of Financial Services, Government of India. Mohammad Mustafa is the Managing Director and Chairman of SIDBI as of October 2017.

SIDBI has its headquarters at Lucknow and having its offices across the country. Its purpose is to provide short term lending and refinance facilities to industries, and serves as the principal financial institution in the MSME (Micro, Small and Medium Enterprises) sector. SIDBI also coordinates the activities and functions of institutions engaged in similar activities. SIDBI has adopted an approach which is named ‘Credit Plus‘ to promote and develop the MSME sector.

Under this approach, besides only providing the credit facilities, it also supports cluster development, enterprise development, skill up-gradation, technology modernization, and marketing support, etc. These MSMEs significantly contribute to the national economy in terms of production, employment, and export. Its key products include: soft loan funds for MSMEs, financing schemes for sustainable development, equity assistance and growth capital, service sector assistance, receivable finance scheme, and many more.

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