Special Purpose Vehicle To Disburse Government-Guaranteed MSME Loans

The Small Industries Development Bank of India has proposed a special purpose vehicle, through which emergency collateral-free government-guaranteed loans to small businesses can be rolled out. Earlier this week, the government announced that it would provide 100 percent guarantee to Rs 3 lakh crore in loans to small businesses to ensure they get access to working capital. The scheme, part of the…

According to data provided by SIDBI in its draft proposal, close to Rs 16.4 lakh crore in loans outstanding to companies which have individual borrowings up to Rs 25 crore. outstanding loans up to Rs 25 crore, have been provided Rs 16.4 lakh crore. Of this, public sector banks have a share of 48.2 percent, private sector banks of 38.9 percent and NBFCs of 12.8 percent. The proposed scheme should