Categories: Banking

SIDBI to provide emergency working capital to MSMEs

The Small Industries Development Bank of India (SIDBI) will facilitate Micro, Small and Medium Enterprises (MSMEs) with emergency working capital of up to Rs 1 crore against their confirmed government orders. The SIDBI’s new loan product i.e. SIDBI Assistance to Facilitate Emergency response against Coronavirus (SAFE) plus will be provided collateral free and disbursed within 48 hours at an interest rate of 5%.

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Along with the above measures, SIDBI has also increased the loan limit for MSMEs from Rs 50 lakh to Rs 2 crore under the SAFE plus initiative. The scheme was launched by SIDBI to provide financial assistance to MSMEs that are engaged in the manufacturing of range of products such as hand sanitizers, shoe-covers, ventilators, head gear, bodysuits, masks, gloves and goggles used in dealing with COVID-19.

Under its flagship scheme called SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (Smile), SEBI has opened an additional financial window for the healthcare sector.

Important takeaways for all competitive exams:

  • Chairman & Managing Director of SIDBI: Mohammad Mustafa.

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