SIDBI revamps term loan scheme
On Tuesday, India’s financial institution for MSMEs ie. Small Industries Development Of Bank (SIDBI), has launched the revamped version of the liquidity scheme for the MSMEs which were terribly hit by COVID. This step was taken to help MSMEs come out of the Covid crisis.
The bank announced on its youtube channel that Liquidity that is supported by Urgent Infusion of Funds through Direct Finance Window 2.0, SIDBI will enable tern loan for its pre-existing customers with the purpose of getting new orders, purchase of raw materials, machines, and equipment, clearing unpaid sum, etc.
SIDBI also said that MSMEs would get assistance up to 20% of their highest outstanding capital in the previous 12 months subject to a maximum of 1.5 crores and aggregate exposure of 2.5 Crore under the first and second scheme.
The scheme will involve zero contribution from the promoter of the organization. Some other features of the scheme were subsidized interest rate, loan processing fee, and no prepayment charges.
This scheme is launched post-Covid to support MSMEs. Some other schemes such as Shwas and Arog scheme, DIY Web Portal, etc was announced to help MSMEs during hard times.