SIDBI to provide emergency working capital of up to Rs 1 cr to MSMEs

New Delhi, Apr 8 (KNN) The Small Industries Development Bank of India (SIDBI) has announced to provide emergency working capital against confirmed government orders, under which revolving working capital term loans shall be provided of up to Rs 1 crore.

According to a release, the new loan product, SIDBI Assistance to Facilitate Emergency response against coronavirus (SAFE) plus will be offered collateral free and disbursed within 48 hours.

The loans will be offered at an interest rate of 5 per cent.

SIDBI further said it has enhanced the loan limit for MSMEs to Rs 2 crore under its SAFE initiative.

"The limit of SAFE loans, which was launched a few days back, has been enhanced from Rs 50 lakh to Rs 2 crore for executing government orders by those MSMEs which are eligible under the respective state government's special policy package for interest subsidy/subvention or capital subsidy," the release said.

SIDBI has also opened an additional financial window for the healthcare sector under its flagship scheme called SMILE (SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises). Now, medium and long-dated loans under SMILE at attractive rates shall be provided.