LoanMinistry of Micro, Small and Medium Enterprises (MoMSME)Verified 19 May 2026

SIDBI SMILE — Soft Loan for MSMEs

The SIDBI SMILE scheme offers affordable quasi-equity and term loans to MSMEs under the Make in India mission, supporting new unit setups, expansions, and technology upgrades.

Maximum amount
₹25.0Cr
Typical payout
₹50.0L
Processing time
2–8 weeks
Application window
Open year-round

Check if your startup qualifies for SIDBI SMILE — Soft Loan for MSMEs

Answer a few questions about your company and get a free, personalised eligibility report across all active government schemes — including SIDBI SMILE.

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Eligibility criteria

Company type
Private Limited, LLP, One Person Company, Proprietorship, Partnership Firm
Stage
Pre-Revenue, Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr)
States
All India (nationwide)
Sectors
saas, manufacturing, food_processing, retail, logistics, other
Prerequisites
  • Udyam (MSME) registration required

Documents required

1
Udyam Registration Certificate
MSME registration required for eligibility under the SIDBI SMILE scheme.
Tip: Register on the Udyog Aadhaar portal to obtain this certificate.
2
PAN Card
KYC requirement for promoters/guarantors.
Tip: Ensure the PAN card is current and matches other identification details.
3
Aadhaar Card
KYC requirement for promoters/guarantors.
Tip: Link your Aadhaar card with your mobile number for easy e-verification.
4
Address Proof
Proof of address such as recent electricity bills, bank statements, or rent agreements for the business location.
Tip: Ensure the document is recent and clearly states the address.
5
Audited Financial Statements
Audited balance sheets and profit & loss statements for the last three years for existing businesses.
Tip: Consult a Chartered Accountant to prepare and authorize these statements.
6
Project Report / Business Plan
A comprehensive report outlining technical feasibility and projected financial metrics.
Tip: Highlight how the loan will be utilized and the expected outcomes.
7
Income Tax Returns
Abridged filings of promoters and their net worth statements.
Tip: Submit the last two years' returns to showcase financial compliance.
8
Memorandum & Articles of Association
Required for corporate or LLP structures to validate business operations.
Tip: Ensure the document is up to date and reflects current operations.
9
Caste/Disability Certificate
To qualify for enhanced loan limits for SC, ST, PwD, or women-led enterprises.
Tip: Contact your local municipal office to obtain the certificate.
10
Pollution Control Board Clearance
Required for enterprises in certain production sectors.
Tip: Check if your industry requires this and apply at your state's Pollution Control Board.
11
Lease or Title Deeds
For properties offered as primary or collateral security.
Tip: Ensure all property documents are clear and unencumbered.

How to apply for SIDBI SMILE

1
Prepare and compile your comprehensive project report and mandatory financial records.
2
Create an account on the SIDBI Customer Onboarding Platform or use the PSB Loans in 59 Minutes Portal.Open portal
3
Select the 'SMILE Scheme' option in your dashboard and complete the application fields.
4
Digitally attach all mandatory documents and e-sign before submitting.
5
Await a digital check and receive in-principle approval if basic credit criteria are met.
6
Credit officers manually assess technical viability, cash flow metrics, and DER.
7
Physical or video verification of the manufacturing site or office facility.
8
Receive a formal loan sanction letter and execute legal documentation.
9
Approved funds disbursed to the business's bank account.

Frequently asked questions

Who is eligible for SIDBI SMILE?

SIDBI SMILE is available to Private Limited, LLP, One Person Company, Proprietorship, Partnership Firm companies at the Pre-Revenue, Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr) stage, across all Indian states (nationwide). Udyam (MSME) registration is required.

How much funding does SIDBI SMILE provide?

SIDBI SMILE provides up to ₹25.0Cr. Most applicants receive around ₹50.0L. This is a loan product — repayment is required.

How long does SIDBI SMILE approval take?

The typical processing time from submission to disbursement is 2–8 weeks.

Is SIDBI SMILE currently accepting applications?

Yes, SIDBI SMILE is currently active and accepting applications. Application window: Open year-round.

Do I need Udyam registration for SIDBI SMILE?

Yes, Udyam (MSME) registration is required. Register at udyamregistration.gov.in before applying.

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Information is based on publicly available scheme guidelines. Last verified 19 May 2026. Always verify with official sources before applying.