SIDBI Startup Mitra and Make in India Soft Loan

SIDBI Startup Mitra and Make in India Soft Loan

Supports Indian startups and small manufacturers with concessional soft loans and venture debt for growth and production.

SIDBI's Startup Mitra and Make in India Soft Loan facility is a direct-lending programme offered by the Small Industries Development Bank of India, targeting early-to-growth-stage Indian startups and MSMEs — particularly those in manufacturing or import-substitution sectors aligned with the Government of India's Make in India initiative. SIDBI, established in 1990 as an apex financial institution for MSME finance and regulated by the Reserve Bank of India, extends soft loans (concessional-rate term debt and venture debt) through its direct lending window, with ticket sizes ranging from INR 25 lakh to INR 25 crore.

The programme is designed for registered Indian entities — primarily for-profit companies — that have demonstrated commercial viability but may lack the credit history or collateral required by commercial banks. Soft loan terms typically feature below-market interest rates, longer repayment tenors, and structured grace periods on principal. The manufacturing sector weight in the eligibility data reflects the Make in India policy alignment, but technology and services startups accessing the Startup Mitra channel may also qualify where SIDBI's investment policy permits. Applications are submitted through SIDBI's Udyami Mitra digital portal or through its direct lending team.

For founders seeking non-dilutive capital, this programme is more accessible than equity alternatives — SIDBI does not take board seats or equity stakes in soft-loan transactions. However, applicants should note that these are debt instruments requiring repayment and servicing: they are not grants. The optimal applicant profile is a post-revenue startup or growth-stage MSME with two or more years of operating history, a credible business plan, and a capital requirement between INR 25 lakh and INR 25 crore for productive investment or working capital.