[Loan] SIDBI schemes for special liquidity support for MSMEs

SIDBI schemes for special liquidity support for MSMEs [Loan, Subsidy, Eligibility Criteria, Apply, Docuemts]

Small industrial Development Bank of India or SIDBI has come up with liquidity support scheme aiming for the small, micro and medium-sized business enterprises. As the pandemic COVID-19 hugely impacts them, financial support will help them. The central bank has received the capital for help through special liquidity facility or SLF. Let us take a look at the other details of the entitled scheme.

Launch details of the scheme

Name of the scheme	Liquidity support scheme
Target group of the scheme	small, micro and medium sized business enterprises
Total amount given for scheme	Rupees 15, 000 crores
Monetary help offered from	Reserve bank of India
Eligible group for the help	Entities with business investment

The Reserve Bank of India has offered the monetary help of rupees 15000 crores to SIDBI so that it can offer help to MSMEs. Due to the outbreak of the pandemic, the money will be given through the banks, different non-banking centers and micro-finance institutions or MFIs for the help of the traders. However, the financial help will be extended irrespective of the size of business as has been stated by SIDBI.

Common Eligibility criteria

The MFIs and NBFCs that are operating business for a minimum of three years are eligible to get the funding
They should also have external rating of the BBB as said by SIDBI
In order to qualify, the NBFCs should have net worth of rupees 20 crores with an additional asset worth of rupees 50 crores
NBFCs should have proper registration under RBI and other credit companies like ICC
The MFI should also have registration as trust cooperative society and companies like MAC and others

However, a refinancing facility has been declared by RBI that worth rupees 50, 000 crores for the SIDBI, National Bank for Agriculture and Rural Development or NABARD and National Housing Bank or NHB.

Other eligibility to get support from MFIs

It should be in compliance with suitable regulatory needs
Entity should not be included under blacklist of PRBI or defaulters list
It should have proper capital adequacy ratio for at least two years
The entity needs to repay the loan after 3 months from the date of payment or the date as decided by bank
It shall require 0.10% of the sanctioned amount that would be subjected for a maximum of rupees 5 lakhs with GST charges

Eligibility for MFIs

The company should not be included under RBI or other bank’s blacklist
Capital adequacy should be above the ration as stated by RBI guidelines and it should be in business operations for two years
It must comply with necessary regulatory guidelines
The facilities are given to microfinance clients
It requires security of the help offered as per bank’s rules

Important helpline numbers

Liquidity support scheme for MSMEs through MFIs – 8795818198
Liquidity support scheme for MSMEs via NBFCs – 8238804670