BENEFIT! Sidbi urges this to MSMEs - What small business owners should know

In a major development, Small Industries Development Bank of India (Sidbi) on Wednesday urged MSMEs to take advantage of its various schemes, including cluster development programme.

Sidbi is closely monitoring development in the upcoming sectors like pharma and defence, and developed attractive products for them, its Chairman and managing director S Ramann said, as per a report in PTI. "The MSME clusters are getting created in aerospace, defence and pharma. This is something that we are closely tracking. Sidbi offers loans to MSMEs at a very competitive interest rate," he said, as per PTI report. Addressing a virtual seminar organised by Assocham, Ramann said Sidbi has a big re-finance portfolio and also provide direct lending.

Rs 16,000 crore to Sidbi

-Recently, the Reserve Bank has provided a special liquidity facility of Rs 16,000 crore to Sidbi to support micro, small and medium enterprise (MSME) hit by the coronavirus.

-This comes over and above the Rs 15,000 crore liquidity support announced in April. 

-This facility is expected to support the MSMEs amid the current COVID crisis and the lockdowns across states.

Karnataka Bank managing director Mahabaleshwara M S during the event said that digital underwriting of loan product is going to be a way forward and will be a game-changer.

Digital underwriting is gaining traction and the bank is underwriting loans up to Rs 25 crore in digital mode, Punjab National Bank executive director Swarup Kumar Saha said.