SIDBI announces Complete Digitization of Credit Operations on its Foundation day

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New Delhi, April 04, 2022: On the occasion of 32nd Foundation Day of SIDBI on April 2, 2022, SIDBI announced an end-to-end digitisation of its Direct Lending operations.

The MSMEs will now have a seamless experience while availing funding from SIDBI as the entire process flow viz. submission of online application, e-signing of application, Registration process, execution of documents, etc. has been fully digitised.  The digitisation drive has also helped the Bank bring in improving its under-writing process through the use of superior risk management tools.  From dependence on dated information furnished by the borrower (such as annual reports), tools have been put in place which auto analyse up to date information available in various public databases (such as GST, ITR, MCA data, etc.).  The digitisation initiatives have also helped strengthening the due diligence process being followed by the Bank as the antecedents of prospective borrowers can now be quickly checked at the click of a button by using the available tools.  The Digital Document Execution of documents shall help in quick completion documentation formalities without the borrower physically visiting SIDBI’s offices for signing of the documents.    The digitisation of lending operations shall help bring down the overall turnaround time in the process of credit delivery, which in turn will help SIDBI in improving its outreach and would facilitate SIDBI in reaching out to a larger number of MSMEs with its products & services.

SIDBI also announced a structured initiative called ‘Voices from the Field” to gather feedback from the major client groups of SIDBI – which comprises MSMEs, NBFCs and Micro Finance Institutions regarding key challenges being faced by them and understanding their expectations from the MSME stakeholders serving the MSMEs.  The feedback shall be  obtained by SIDBI officials through personal visits and discussions with members of the target group and findings shall be analysed and compiled in the form of a report.  The first report will be released by mid May 2022 and shall act as a guide for Policymakers for the sector.

An initiative for the Development of an “Entrepreneurship Curriculum” which will be in the form of a Structured Entrepreneurship course with extensive handholding support, was also announced during the virtual event held at Mumbai which was attended by the entire staff of SIDBI spread across the country.  The course is expected to benefit students in various Institutions and MSMES and help in Enterprise Creation thereby acting as a catalyst for the growth of of our vibrant MSME ecosystem.

On the occasion, Shri Sivasubramanian Ramann, CMD, SIDBI said “Over the years SIDBI has been instrumental in bringing many interventions for the MSME ecosystem and the initiatives of Complete Digitisation and Entrepreneurship Development announced on this Foundation Day would encourage other stakeholders to follow and offer quicker services to MSMEs.”

SIDBI is also in the process of identification of few industrial / handicraft clusters all over the country under its “PROJECT CARE”.  Officials from SIDBI will closely associate with entrepreneurs in these clusters and act as their mentors providing all required guidance / support.  Improvement achieved by the cluster at the end of the year shall be documented.