Hotline: 1800 102 2007
X
Search Business Opportunities
2013-05-17

SIDBI to Support Banks/NBFCs in MSME Refinancing, Resources

Small Industries Development Bank of India (SIDBI), the apex body for the development of MSME sector, has identified four major gaps in financing MSME sector in India that impacted the viability and sustainability of the sector. The four areas are risk ca

Small Industries Development Bank of India (SIDBI), the apex body for the development of MSME sector, has identified four major gaps in financing MSME sector in India that impacted the viability and sustainability of the sector. The four areas are risk capital/equity, receivable financing/factoring, service sector and sustainable financing for cleaner technology and energy efficiency.

Addressing a MSME Conference, NK Maini, DMD, SIDBI, said, “SIDBI is working on addressing identified gaps in the MSME ecosystem and develop niche products, processes and delivery channels to address various gaps, such as financing both in debt and equity funding through structured and innovative products.” He added, “We are committed to play the role of a catalyst by augment the resources of banks and NBFCs through refinance and resource support for the growth of the sector.”

SIDBI, which funded more than 8000 MSMEs, has engaged accredited consultants to work closely with MSMEs. These consultants understand the project requirements, and prepare the project report as required by banks. These project reports will be rated by accredited rating agencies. The rated project reports will then be submitted/ forwarded to banks, who may find them easier to support as these reports are prepared and rated by accredited consultants/rating agencies. This syndication process is likely to facilitate availability of credit to MSMEs in a transparent and timely manner.

Further, to address the problem of securing loans without collateral security by Micro and Small Enterprises, the Ministry of MSME and Ministry of Finance have jointly launched Credit Guarantee Fund Trust which provide guarantees for  loans  up to Rs. 1 crore. The Scheme has been running successfully over last decade and around 1 million guarantees have so far been issued.

SIDBI has embarked upon a major role in ‘Credit plus’ services to MSMEs in the country through establishing Credit Facilitation Centres (CFCs) at all major MSME focused clusters so as to extend non-financial services to existing as well as prospective entrepreneurs though systematic dissemination of information about various developmental/promotional support services available from Government agencies, banks & financial institutions. Towards this, appointment of ‘Knowledge Partners’ to operate CFCs is likely to further strengthen MSME ecosystem.

Related opportunities
  • Laundry & Dry Cleaning
    About : Started in 2015, Spin N Press is a growing..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Dairy/F&V Stores
    About Us : Moo Cow was started aiming to be the bigest..
    Locations looking for expansion Delhi
    Establishment year 2010
    Franchising Launch Date 2011
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Others Food Service
    About Us: Let's Meat is an innovative brand from Jaipur which..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Quick Service Restaurants
    About Us: Biryani queen is a unique & Conceptualized QSR brand,..
    Locations looking for expansion Delhi
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts