The Hindu Business Line : SIDBI lends Rs 6,269 cr to MSMEs

The Small Industries Development Bank of India (SIDBI) has withdrawn Rs 6,269 crore, just Rs 731 crore short from the total of Rs 7,000 crore it was provided under the refinance facility of the Reserve Bank of India for the medium, small and micro enterprises sector, it was said in a reply in Parliament. The amount was for incremental lending to the sector, which was badly affected by the global recession. About Rs 4,336 crore has been channelised through public sector banks, Rs 1,513 crore through SIDBI’s own direct credit scheme and the remaining Rs 420 crore through State Financial Corporations. According to Government data tabled in Rajya Sabha, the loan limit under Credit Guarantee Scheme has been extended to Rs 1 crore from Rs 50 lakh with a guarantee cover of 50 per cent. Meanwhile, for credit facility up to Rs 5 lakh, the guarantee cover has been increased to 85 per cent from 80 per cent. An advisory has also been sent to Public Sector Enterprises for prompt payment of bills of MSMEs, while an interest subvention of 2 per cent in pre– and post–shipment export credit has been provided. Further, the interest rate for borrowing by micro enterprises has been reduced by 100 basis points, while for SMEs it has been reduced by 50 basis points. In another reply in Parliament, the Government said that (up to March 2008), 99,941 MSMEs have been rendered sick.

— Our Bureau

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