SIDBI urges MSMEs to take benefit of its schemes
The Small Industries Development Bank of India (SIDBI) has urged micro, small and medium enterprises (MSMEs) to take advantage of its various schemes, including cluster development programmes.
Addressing a virtual seminar organised by ASSOCHAM, SIDBI Chairman and Managing Director, S Ramann said that the institution is closely monitoring development in upcoming sectors like pharma and defence, and is developing attractive products for them.
"The MSME clusters are getting created in aerospace, defence, and pharma. This is something that we are closely tracking. SIDBI offers loans to MSMEs at a very competitive interest rate," he added.
SIDBI has a big re-finance portfolio and also provides direct lending.
Recently, the RBI has provided a special liquidity facility of Rs 16,000 crore to SIDBI to support MSMEs hit by the coronavirus.
This comes over and above the Rs 15,000 crore liquidity support announced in April. This facility is expected to support the MSMEs amid the current COVID crisis and the lockdowns across states.
Karnataka Bank Managing Director Mahabaleshwara MS during the event said that digital underwriting of loan products is going to be a way forward and will be a game-changer.
Digital underwriting is gaining traction and the bank is underwriting loans up to Rs 25 crore in digital mode, Punjab National Bank Executive Director Swarup Kumar Saha said.
In December last year, SIDBI launched a web portal to help MSMEs take benefit of the Reserve Bank of India's one-time debt restructuring. This portal will help MSMEs prepare restructuring proposals by keying in only the most essential data of their past financials, future projections, and restructuring requirements.
(Disclaimer: Additional background information has been added to this PTI copy for context)