General Refinance Scheme - SIDBI
The General Refinance Scheme is operated by the Small Industries Development Bank of India. It was introduced to strengthen the MSME credit ecosystem by providing refinance to banks, NBFCs and other eligible lending institutions. Through refinance, SIDBI ensures that financial institutions have adequate liquidity to lend to MSMEs at competitive interest rates. The purpose of the scheme is to enhance credit flow to manufacturing, service and trading MSMEs across India. Your business can benefit because banks can offer better loan terms when they receive refinance support from SIDBI.
Key Features
- Refinance support to banks and NBFCs: SIDBI provides funds to eligible lending partners so they can expand MSME lending without facing liquidity constraints.
- Supports term loans and working-capital loans: Refinance can be availed against loans given to MSMEs for machinery, expansion, technology upgrades, or working-capital requirements.
- Flexible tenor options: The scheme allows lending institutions to choose refinance tenor based on their portfolio, generally ranging from short-term to medium-term options.
- Priority to manufacturing, services and green sectors: SIDBI encourages sectors that generate jobs, promote sustainability and enhance productivity by giving refinance priority to them.
- Supports new units and expansion projects: Both newly established MSMEs and existing businesses seeking capacity enhancement can indirectly benefit from refinance-enabled lending.
- Helps lenders offer competitive loan pricing: Because SIDBI refinance reduces cost of funds for banks, MSMEs often receive more affordable interest rates.
Financial Assistance
Eligibility Criteria
Who can apply:
- All manufacturing, service and trading MSMEs
- Enterprises seeking credit for new units, expansion or technology upgrades
- Green, clean-tech, renewable or energy-efficient MSMEs
- Cluster-based MSME units
- Loans must comply with SIDBI refinance norms
- Lending institutions must maintain asset quality
- End-use of loan must be for productive MSME activities
- KYC, due-diligence and regulatory compliance must be ensured by the lender
Documents Required
- Udyam Registration Certificate
- KYC of promoters
- Business address proof
- PAN and GST details
- Project report or business plan
- Machinery quotations or invoices
- Last 2–3 years’ financial statements (if existing unit)
- Bank statements
- Collateral documents (if required by lender)
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Apply Directly to SIDBI (Official Route)
- Contact the nearest SIDBI Regional Office.
- Submit the refinance request along with details of MSME loan portfolio.
- Provide key financial documents and regulatory compliance certificates.
- SIDBI conducts due diligence and portfolio assessment.
- Terms of refinance (tenure, rate, limits) are finalized.
- Signing of refinance agreement.
- Release of refinance funds as per approved limits.
Option 3: Apply Through SIDBI’s Online Channels
- Visit SIDBI’s official website.
- Navigate to the Refinance Schemes section.
- Submit an online enquiry or preliminary application.
- SIDBI officials connect for detailed documentation and processing.