Coronavirus: SIDBI offers emergency credit facility of up to Rs 1 cr to SMEs
The Small Industries Development Bank of India (SIDBI) on Tuesday said it will provide emergency working capital of up to Rs 1 crore to small and medium enterprises (SMEs) against their confirmed government orders.
The new loan product, SIDBI Assistance to Facilitate Emergency (SAFE), in response to coronavirus, will be offered collateral-free and disbursed within 48 hours, the statement said. The loans will be offered at an interest rate of five percent.
SIDBI further said it has enhanced the loan limit for micro, small, and medium enterprises (MSMEs) to Rs 2 crore under its SAFE initiative.
"The limit of SAFE loans, which was launched a few days ago, has been enhanced from Rs 50 lakh to Rs 2 crore for executing government orders by those MSMEs which are eligible under the respective state government's special policy package for interest subsidy/subvention or capital subsidy," the release read.
The scheme was launched to provide financial assistance to MSMEs engaged in manufacturing of hand sanitisers, masks, gloves, head gear, bodysuits, shoe-covers, ventilators, and goggles used in dealing with coronavirus.
SIDBI has also opened an additional financial window for the healthcare sector under its flagship scheme SIDBI Make in India Soft Loan Fund for MSMEs.
(Edited by Javed Gaihlot)