An agreement has been signed with Asian Development Bank (ADB) for a loan of US$ 50 million to SIDBI on 19th March, 2010. ADB has also approved a Partial Credit Guarantee (PCG) facility of US$ 250 million for the Micro, Small and Medium Enterprises (MSME).
SIDBI has been authorised as the Borrowing and executing agency for the loan. The Loan Agreement includes 15 years term with interest rate determined in accordance with London Interbank Offer Rate (LIBOR) based lending facility and commitment fee of 0.15% per annum.
The action plan prepared by Government for utilization of the loan for promotion of MSMEs in the country provides for channelizing the loan to micro enterprises in 12 states under SIDBI’s supervision, 30% directly and 70% through participating financial institutions. Qualified female entrepreneurs are to be given preference to access the loan.
This information was given by Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Rajya Sabha today.
