SIDBI to offer emergency credit facility of Rs 1 crore to SMEs

SIDBI will be offering an emergency credit facility to SMEs & MSMEs due to the disruptions caused by Covid-19 pandemic.

The Small Industries Development Bank of India (SIDBI) will be providing emergency working capital up to Rs 1 crore to SMEs against their confirmed government orders.

SIDBI Assistance to Facilitate Emergency (SAFE) is a new loan product which is collateral free and disbursed within 48 hours.

The loans will be offered by SIDBI at an interest rate of 5 per cent. It has also increased the loan limit for MSMEs to Rs 2 crore under the SAFE assistance programme.

SIDBI in a release said, “”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 scheme is being specifically launched for MSMEs involved in manufacturing of hand sanitizers, masks, gloves, head gears, body suits, goggles and ventilators used in dealing with Coronavirus.

An additional financial window has been opened up for the health care sector under its flagship scheme called as SIDBI Make in India Soft Loan Fund for MSMEs (SMILE).