Small Industries Development Bank of India (SIDBI) has joined hands with Google India Pvt Ltd (GIPL) to support micro, small and medium enterprises (MSMEs).

Highlights

• The partnership will pilot a social impact lending programme, providing a financial assistance of up to Rs 1 crore at competitive interest rates to MSMEs.
• It will bring a corpus of $15 million to MSMEs, as a crisis response related to Covid-19 pandemic.
• Under the agreement, a loan programme targeted at micro enterprises (with turnover up to Rs 5 crore), is being implemented by SIDBI. The loan sizes rang between Rs 25 lakh to Rs 1 crore.

Significance of the collaboration

• The collaboration between SIDBI and GIPL will enhance the efforts in expanding MSEM sector’s access to credit.
• It also marks the launch of a paperless journey of SIDBI to its customers, right from on-boarding to the disbursal stage.

Major Focus of the programme

The programme will majorly focus on enterprises run by women entrepreneurs. A suitable interest rate concession will also be provided to such enterprises.