[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.
SIDBI schemes for special liquidity support for MSMEs

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

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