Chennai: Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of Micro, Small & Medium Enterprises (MSMEs), has launched special liquidity scheme for MSMEs through banks including Small Finance Banks (SFBs), Non-Banking Financial Companies including fintech NBFCs and Microfinance Institutions (MFIs).
The scheme would provide financial support to banks, NBFCs and MFIs by way of term loans to ensure operational continuity and promote onward lending to MSMEs. The tenor of these loans will be 90 days, said a press release.
According to Mohammad Mustafa, Chairman and Managing Director of SIDBI, “We are continuously working towards helping MSMEs survive the crisis created due to the COVID- 19 pandemic. Keeping the current situation in mind, we were provided a special liquidity window of Rs.15,000 crore by the Reserve Bank of India (RBI) to enable MSMEs to tide over their liquidity crunch.”