MUMBAI: The Small Industries Development Bank of India (Sidbi) has launched two quick-delivery schemes to fund businesses in the micro, small and medium enterprise (MSME) segment that are helping tackle the second wave of the coronavirus pandemic.
Under the SHWAS (Sidbi assistance to Healthcare sector in War Against the Second wave of Covid) scheme, MSMEs engaged in manufacturing of oxygen cylinders, oxy-generators, oxygen concentrators, liquid oxygen or providing services in transportation, storage, refilling or supply of these items will be eligible for low-cost credit.
Under the AROG (Sidbi Assistance to MSMEs for Recovery & Organic Growth during Covid) scheme, small units engaged in manufacturing of products or providing services, which are directly related to fighting Covid, such as pulse oximeters, permitted drugs (Remdesivir, Fabiflu, Dexamethasone, Azithromycin, etc), ventilators, and PPE will get credit.
“The endeavour is to provide credit facilities to deserving MSMEs that have risen to the occasion in helping the citizens in this hour of need by keeping their activities operational and providing healthcare at all levels,” Sidbi chairman and MD S Ramann said.
Sidbi said these schemes will provide 100% funding up to an amount of Rs 2 crore to an MSME unit at an interest rate of 4.5-6% per annum, within 48 hours after receipt of documents. Borrowers can put in their applications online.
On March 25, 2020, Sidbi had launched Sidbi Assistance to Facilitate Emergency response against coronavirus (SAFE) scheme to provide financial support to all MSMEs engaged in manufacturing of any product or providing any services, which are related to fighting the coronavirus. These include hand sanitisers, masks, bodysuits, ventilators and testing labs. More than 400 MSME units producing products to fight Covid have been sanctioned financial assistance under SAFE (worth Rs 178 crore) in FY21.