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.

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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.