Question

Write a note on SIDBI.

Answer 1

Small Industries Development Bank of India has been set up as an apex bank. The main functions of SIDBI bank are as follows:

1. To provide both direct and indirect financial assistance to small business units in order to meet their requirements.

2. To coordinate the functions of other institutions engaged in similar activities.

3. SIDBI has formulated CGFT (Credit Guarantee Fund Trust) to provide guaranteed loan up to Rs.10 lakhs.