Solution

SIDBI provides direct, indirect and micro finance facilities. Direct Finance: In the form of Term Loan Assistance, Working Capital Assistance, Support against Receivables, Foreign Currency Loan, Scheme of Energy Saving for MSME sector, equity support etc. Indirect Finance: The Indirect assistance in the form of Refinance is provided to Primary Lending Institutions (PLIs), comprising banks, State Level Financial Institutions, etc. having a wide network of branches all over the country. The main objective of Refinance Scheme is to increase the resource position of PLIs which would ultimately facilitate the flow of credit to MSME sector. Micro Finance: SIDBI provides micro finance i.e. credit to small entrepreneurs and businessmen for establish their business.