SIDBI secures $50 million ADB finance for MSMEs
04 May 2010
The Small Industries Development Bank of India (SIDBI) has signed an agreement with the Asian Development Bank (ADB) for a loan of $50 million for on lending to micro, small and medium enterprises (MSME). Besides, ADB has also approved a partial credit guarantee (PCG) facility of $250 million for MSMEs.
SIDBI will be the borrowing and executing agency for the loan. The agreement provides for 15-year term loans with interest rate determined in accordance with London Interbank Offer Rate (LIBOR) based lending facility and commitment fee of 0.15 per cent per annum.
The funds would be channelised to micro enterprises in 12 states under SIDBI's supervision, 30 per cent directly and 70 per cent through participating financial institutions.
Qualified female entrepreneurs are to be given preference to access the loan, under the government's stated policy.
Minister of state for finance Namo Narain Meena gave this information in a written reply in the Rajya Sabha on Monday.