Sidbi to provide loans up to Rs 50 lakh to MSEs manufacturing medical supplies to fight COVID-19

Small Industries Development Bank of India (Sidbi) on Friday said it will provide loans up to Rs 50 lakh to micro and small enterprises (MSEs) that are manufacturing medical supplies for fighting the novel coronavirus (COVID-19).

The Sidbi Assistance to Facilitate Emergency (SAFE) response against coronavirus scheme will offer loans to MSEs at a fixed interest rate of 5 per cent and with a maximum loan repayment tenure of five years.

MSEs engaged in manufacturing of hand sanitizers, masks, gloves, head gear, body suits, shoe-covers, ventilators, goggles and testing labs are eligible for loans under this scheme.

The situation in which the country is going through right now, we felt that there is a need to immediately support and encourage those MSEs that are helping the nation fight the menace, Sidbi chairman and managing director Mohammad Mustafa, said in a statement

It is the company's salute and support to such enterprises to be assured that we are standing with them towards national cause, he added.

The special scheme will help MSEs to acquire equipment, plant and machinery, other assets including raw materials required for production or delivery of services. It will also help meet additional emergencies to ramp-up supplies of these essential products.

The loans offered are collateral-free and will be sanctioned within 48 hours of applying and submission of documents.

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MSEs can apply online for availing loans under the scheme, Sidbi said.