SIDBI is a Small Industries Development Bank of India, here is good news for the entire one who is in with the small scale business as this bank has decided to provide the money to the MSME which is Micro, Small, Medium Enterprises. This has been involved in the production of the goods which are essential in the Corona was under this moratorium period. The good part of it is, this bank SIDBI Small Industries Development of Bank is ready to give the loan from Rs.50 lakhs to Rs.1 Crore at just 5% of the interest rates.
A mortgage of any guarantee is also not available by the customer for MSME to avail of this SIDBI Loan. This is the very good opportunity to grab as it is a moratorium period the bank has decided not to charge any processing fee and o any other additional charges at the time of the repayment on this loan by the customer.
Loan of Up to 1 crore Without Any Mortgage or Guarantee in 48 Hours
The above-given details have been announced by the senior officials of the SIDBI. This was announced in e-pathshala in the conference which was organized by the CIMSME. This loan can be availed by any of the customers to all the MSMEs. This loan provides all the services which are connected with the production of the necessary commodities. The necessary products at this moratorium include food items, sanitizers, masks, gloves, medicines, and more.
The General Manager of the SIDBI who is Vivek Kumar Malhotra has given the trust saying that to fight against this virus called CORONAVIRUS, they decided to provide the loans in the form of MSMEs. These loans come with the two schemes. Under the first scheme of this MSME loan the customers can take a loan up to Rs.50 lakhs which is called the safe scheme and the other scheme called second scheme candidates can avail the loan up to Rs.1 crore which is called as the Safe plus scheme.
The customers have to pay only 5% of the interest rates on the taken loan. This is applicable for both the schemes which are for both the loans the customers have to pay only 5% of the interest rates only. There is no need of spending much time in the procedure of availing this loan. You can apply for the loan using online mode. Within 48 hours of application, only the loan will be approved to the applicants. Before availing the loan to the application the verification procedure will also be done. This verification procedure is done electronically. To make this successful the funds released under these schemes are Rs.100 crores. This fund was released under both the schemes.
The second general manager of the SIDBI Small Industries Development Bank of India, who was also present at the meeting at e-school which was organized by the chamber, has said that even if the customer who is already linked up with this bank and has already taken the loans to form this bank can also utilize this schemes and take this loans which has no connection with the SIDBI. He also said that the condition of under these schemes taking this loan is only to only cash profit the balance sheet in MSME. The old customers who are already linked up and associated with this SIDBI with the loans should have cash profit in their balance sheet of last year and also the two-year cash profit should be there in their balance sheet. In the e-pathshala which was organized on Friday, almost 200 MSMEs participated and showed keen interest in these schemes said by the Mukesh Mohan Gupta, who is the president of the CIMSME.
Details about SIDBI Bank-
SIDBI is a Small Industrial Development Bank of India, this is the development financial in India. Its headquarters are located at Lucknow. This bank is having many branches throughout the country. The main aim and objective of this bank are to provide the refinancing facilities and the short term lending to the industries. This bank serves as the financial institution in the Micro, Small, and Medium Enterprises which is MSME sector. The function of the institutions which are engaged in similar other activities also SIDBI coordinates.
Among the four all India Financial Institutions SIDBI is one of them which was supervised by the Reserve Bank. The other three are EXIM Bank, NABARD, and NHB.
To strengthen the MSME Ecosystem in Haryana SIDBI Launches Outreach program –
Launching this program at Haryana is the ninth outreach program under the initiative. Already this program was initiated in other 8 states which are,
- Uttar Pradesh
- Kerala and now Haryana is the ninth State.
To develop the micro, small and medium enterprises ecosystem at Karnal along with the collaboration with the Haryana Development Commissioner- Ministry of MSME, Small Industries Development Bank of India has been organized an outreach program. The important and main aim of the following program is to promote the activities for the dissemination of the digital platforms.
The above program is completely based on the recommendation of the expert committee on MSMEs. This committee was headed by the Shri. U.K.Sinha. He is the former Managing Director and Chairman of the Security and Exchange Board of India SEBI. To collaborate with the State Governments to get the units boarded in MSME onto the digital platforms such as the listing on the stock exchanges, e-commerce platforms, PSB loans in 59 minutes, and more. These are the official programs from the following-
- TCOs Technical Consultancy Organizations
- Industry Associations
- State Governments
- And also the other relevant stakeholders.
The fund on tap, but it may not help NBFCs, MSMEs
Provided money for the facilities such as Rs.15,000 Crore the RBI provisioned for the refinance through the SIDBI. This may not be utilized at all. If this condition exists. SIDBI stipulated that the loans providing to the needy would be repaid in bullet installments after three months of the withdrawal date. In this pandemic period of COVD-19, a special facility was released by the RBI of Rs.15,000 crore. This fund was released for SIBDI to provide liquidity support to the MSME sector. This was supported by banks, NBFCs, and MFIs. As it is difficult to raise the resources from the market, this has made the financial conditions tighten in the wake of this pandemic period.
In this COVID-19 period, the Central Bank has also supported and provided Rs.25,000 crore to the NABARD. This money will be refinancing to the following banks for supporting housing finance companies-
- 10,000 Crore to the NHB National Housing Bank
- Rural Cooperative Banks
- Regional Rural Banks
ESAF Small Finance Bank expresses Commitment for Listing-
Kerala Based small financing bank which is ESAF, had also confessed that it also going for listing its stocks in line. The funds released by the bank along with the RBIs requirement. This money will be helpful to support the country’s economy which was coming down in this COVID-19 Pandemic Period. Many banks have taken the efforts to help the needy and the poor’s during this ongoing nationwide lockdown. All banks are ready to support the ones who are in need and stranded migrant workers in meeting the daily needs as their social responsibility.
The bank has come forward completely to help in this pandemic period and launched the mobile clinics. These clinics are called as the Bandhu Clinics. The main objective of launching these clinics is to provide the medical need to migrant workers especially in eastern India in Kerala. They also provided a helpline number for them.