The Role of SIDBI in the Development of SMEs in India-A Case Study with Special Reference to Mezzanine Finance

The SMEs have always been recognised as a significant contributor to the Indian Economy. But at the same time face the problem of access of finance. In the world of globalisation and the growing need of major investments and the need for unconventional forms of financing has elevated. The methodology used in this paper is case study approach. The objectives of the paper are to understand the concept of mezzanine finance and to understand the efforts undertaken by SIDBI which directly open up avenues for unconventional financial sourcing. By resultant discussion we are able to summarise that the efforts taken up by the Government of India and SIDBI have by and large opened all probabilities for the SMEs to see a bright future and adopt to unconventional sources of financing their business than relying only on traditional sources of financing.