The Small Industries Development Bank of India (SIDBI) has recently launched a new loan scheme ‘SPEED’ (SIDBI-Loan for Purchase of Equipment for Enterprise Development) for MSMEs to purchase machinery. The new loan scheme has been launched to provide easy credit access to MSMEs for investing in machinery, say media reports.
Under this scheme, financial assistance of up to Rs 1 crore will be provided to new borrowers from SIDBI, whereas assistance of up to Rs 2 crore will be provided to its existing borrowers for the purchase of machinery for the development of enterprises. The rate of interest would be 9.25-10 percent as per internal ratings along with a repayment period of 2-5 years.
The bank would sanction the loans within three days of submitting information/documents and would disburse the loans within four days of sanction.
SIDBI is the principal financial institution for the promotion, financing, and development of MSMEs in the country as well as for coordination of functions of institutions engaged in similar activities.
Earlier this year, to promote entrepreneurship under the theme ‘Swavalamban’, SIDBI set up a stall at the Kumbh Mela 2019 in Prayagraj, Uttar Pradesh. ‘Aaayiye Ganga Nahaaiye Aur Udyami Banker Jaayiye’ (‘bathe in the Gages and become an entrepreneur’) was the tagline of the stall, and the people who visited the stall were able to access information about schemes such as Pradhan Mantri Mudra Yojana, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and others. In the release, SIDBI also said that it has reoriented its thrust to MSMEs and is doing what is required to make them feel empowered.
In May, SIDBI reported a 28.22 percent increase in net profit, amounting to Rs 519.36 crore for the March quarter and stated to target more MSMEs for financing.