On April 7, 2020 The Small Industries Development Bank of India (SIDBI) has announced that it will provide emergency working capital of up to Rs 1 crore to Small and Medium Enterprises (SMEs). The SIDBI Assistance to Facilitate Emergency response against coronavirus (SAFE) loan limit has been increased to 2 crores from Rs 50 lakhs.
Gist about SAFE scheme
i.It is a financial assistance program launched by SIDBI for (Micro, Small & Medium Enterprises) MSMEs that engage in the manufacturing of products (hand sanitizers, masks, gloves, head gear, bodysuits, shoe covers, ventilators, goggles, among others) or offer services to combat the novel coronavirus.
ii.It will enable MSMEs to acquire equipment, plant and machinery, other assets including raw materials required for production or delivery of services & also to meet additional emergencies to ramp-up supplies of these essential products.
iii.The loans have a fixed rate of interest of 5 % with a repayment tenure of 5 years.
iv.They are collateral free loans & will be sanctioned within 48 hours of applying and submission of documents digitally.
v.Apart from this, SIDBI has opened an additional financial window for the healthcare sector under its flagship scheme called SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (Smile).
About SAFE plus
It will be offered collateral free and disbursed within 48 hours. The assistance is Maximum upto Rs 100 Lakh (is linked to turnover of the unit).
About SIDBI:
It is set up on 2nd April 1990 under an Act of Indian Parliament. It acts as a Principal Financial Institution for Promotion,Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for coordination of functions of institutions engaged in similar activities.
Headquarters– Lucknow, UttarPradesh
Chairman & Managing Director (MD)– Mohammad Mustafa
