SIDBI- Google join hands to support MSMEs
Small Industries Development Bank of India (SIDBI) has joined hands with Google India Pvt Ltd (GIPL) to support micro, small and medium enterprises (MSMEs).
- The partnership will pilot a social impact lending programme, providing a financial assistance of up to Rs 1 crore at competitive interest rates to MSMEs.
- It will bring a corpus of $15 million to MSMEs, as a crisis response related to Covid-19 pandemic.
- Under the agreement, a loan programme targeted at micro enterprises (with turnover up to Rs 5 crore), is being implemented by SIDBI. The loan sizes rang between Rs 25 lakh to Rs 1 crore.
Significance of the collaboration
- The collaboration between SIDBI and GIPL will enhance the efforts in expanding MSEM sector’s access to credit.
- It also marks the launch of a paperless journey of SIDBI to its customers, right from on-boarding to the disbursal stage.
Major Focus of the programme
The programme will majorly focus on enterprises run by women entrepreneurs. A suitable interest rate concession will also be provided to such enterprises.
Small Industries Development Bank of India (SIDBI)
SIDBI is the apex regulatory body that license and regulate the ‘micro, small & medium enterprise finance companies’ across India. It works under the jurisdiction of Ministry of Finance. SIDBI is headquartered at Lucknow and also have offices across the country. It was set up with the objective of providing refinance facilities to the banks and financial institutions. SIDBI engages in term lending & working capital finance to industries. It also serves as the principal financial institution in MSME sector.
When was SIDBI established?
SIDBI was established on April 2, 1990 by an Act of Parliament.