SIDBI offers emergency credit facility of up to Rs 1 cr to SMEs

Mumbai, Apr 7 () 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 against their confirmed government orders. The new loan product, SIDBI Assistance to Facilitate Emergency response against coronavirus (SAFE) plus will be offered collateral free and disbursed within 48 hours, a release said.

The loans will be offered at an interest rate of 5 per cent.

SIDBI further said it has enhanced the loan limit for MSMEs to Rs 2 crore under its SAFE initiative.

"The limit of SAFE loans, which was launched a few days back, 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 said.

The scheme was launched to provide financial assistance to MSMEs engaged in manufacturing of hand sanitizers, masks, gloves, head gear, bodysuits, shoe-covers, ventilators and goggles used in dealing with COVID-19.

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