SIDBI to provide emergency working capital up to Rs 1 crore to MSMEs
SIDBI has offered an emergency credit facility of up to Rs 1 crore to the MSMEs that are involved in making essential items like sanitizer and masks.
The Small Industries Development Bank of India (SIDBI) said on April 7, 2020 that it will provide emergency working capital up to Rs 1 crore to the small and medium enterprises(MSMEs) against their confirmed government orders.
The offered loan - SIDBI Assistance to Facilitate Emergency response against Coronavirus (SAFE PLUS)-will be collateral-free and it will be disbursed to the MSMEs within 48 hours.
SAFE PLUS scheme: Objective
The scheme was launched to provide financial assistance to MSMEs that are involved in making essential items including masks, sanitizers, gloves, head gear, shoe covers, goggles, bodysuits and ventilators that are significant to combat COVID-19 pandemic.
SAFE PLUS scheme: Key Highlights
• The SAFE PLUS loan will be offered to the MSMEs as an emergency funding in the wake of the lockdown due to coronavirus outbreak.
• The loans will be provided at an interest rate of five percent.
• SIDBI further informed that the limit of SAFE loans has been enhanced from Rs 50 lakh to Rs 2 crore.
• The limit has been enhanced for those MSMEs that are eligible under the respective state government's special policy package for interest subsidy, subvention or capital subsidy.
• It has been done to assist them to execute government orders without any capital crunch during the crisis time.
Besides this, SIDBI has opened an additional financial window for the healthcare sector of India under its flagship scheme called SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (Smile).