SIDBI Launches Loan Products for MSMEs to Combat Covid

These products will help augment the supply of oxygen cylinders, concentrators, oximeters, essential drugs by MSMEs

SIDBI Launches Loan Products for MSMEs to Combat Covid
SIDBI Launches Loan Products for MSMEs to Combat Covid
PTI - 30 April 2021

The Small Industries Development Bank of India (SIDBI) , to assist MSME in the fight against the Covid-19 pandemic, has launched two loan products at a concessional rate for ramping up the supply of products.

These products will help augment the supply of oxygen cylinders, oxygen concentrators, oximeters, and essential drugs by MSMEs, the SIDBI said in a statement.

The principal financial institution engaged in the promotion, financing, and development of MSMEs has launched SHWAS (SIDBI assistance to Healthcare sector in War Against the Second wave of Covid-19) and AROG (SIDBI Assistance to MSMEs for Recovery & Organic Growth during a pandemic), two new quick credit delivery schemes, it said.

The schemes are devised under the guidance of the Government of India which facilitates funding for production and services related to the supply of oxygen cylinders, oxygen concentrators, oximeters, and essential drugs, it said.

The second wave or massive resurgence of Covid-19 in the country has led to an unprecedented burden on the health infrastructure of the country.

SIDBI, considering the current distress caused by Covid-19 and being a national emergency, has devised these schemes to cater to help assist healthcare service providers in fighting against the pandemic.

These schemes envisage 100 per cent funding up to an amount of Rs 2 crore to an MSME unit at an attractive interest rate of 4.5-6 per cent per annum, within 48 hours after receipt of all the documents or information.

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