New Delhi, June 12 (KNN) To facilitate the flow of credit to Micro Small and Medium Enterprises (MSMEs) for investing in machineries, Small industrial Development Bank of India (SIDBI) has recently launched the new scheme called SIDBI-Loan for Purchase of Equipment for Enterprise Development (SPEED) for machinery purchase from Original Equipment Manufacturers (OEMs) on competitive rate of interest.

Under this scheme, financial assistance of up to Rs 1 crore will be provided to new borrowers to SIDBI, whereas assistance of up to Rs 2 crore will be provided to its existing borrowers for the purchase of equipment for the development of enterprises.

Also, the bank would sanction the loans within 3 days of submitting information/documents and would disburse the loans within 4 days of sanction.

In addition, other features of the scheme includes, direct payment to OEM, rate of interest 9.25%-10% as per internal ratings along with repayment period of 2-5 years.

SIDBI is the principal financial institution for the promotion, financing and development of MSME sector in the country. The bank has been catering to the MSMEs with its various direct/indirect schemes for facilitating the flow of credit to this sector.