Small Industries Development Bank of India (SIDBI) has come up with a new move to help the micro, small, and medium enterprises (MSMEs) with the financial support they need. SIDBI has launched two new loan products being offered at discounted rates to ensure the supply of products used in the fight against COVID-19.
SIDBI has stated that these loan products will ensure no scarcity when it comes to oxygen cylinders, oximeters, oxygen concentrators, and essential drugs by MSMEs. The two new quick credit delivery schemes are:
- SIDBI assistance to Healthcare sector in War Against Second wave of COVID19 (SHWAS)
- SIDBI Assistance to MSMEs for Recovery & Organic Growth during COVID19 pandemic (AROG)
The Government of India has guided substantially in devising the new credit delivery schemes. It has facilitated the funding for production and services related to the supply of oxygen cylinders, oxygen concentrators, oximeters, and essential medicines.
The key reason for these new loan products for MSMEs is the second wave or the sudden resurgence of COVID-19 cases. This has created an unprecedented burden on the healthcare infrastructure of India.
The current distress caused by the pandemic has led to a national emergency. Looking into the situation carefully, SIDBI has devised loan schemes to assist the healthcare sector fight against the pandemic.
SIDBI’s new loan schemes provide 100% funding to MSMEs up to an amount of Rs.2 crore to an MSME unit at interest rates of 4.5% to 6% p.a. The loan will be disbursed within 48 hours of receiving the complete documentation.
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