Coronavirus pandemic | SIDBI launches liquidity support scheme for MSMEs

SIDBI has launched a liquidity support scheme for micro, small and medium enterprises (MSMEs) impacted by the COVID-19 outbreak.

Small Industries Development Bank of India (SIDBI) said it had received Rs 15,000 crore from the Reserve Bank of India (RBI) to provide financial aid to MSMEs.

The central bank provided the capital through a Special Liquidity Facility (SLF).

SIDBI will provide the financing to MSMEs through banks, non-banking finance companies (NBFCs) and micro-finance institutions (MFIs).

"The schemes would cover all eligible entities having investment grade ratings irrespective of the size of the organisation to ensure wider coverage," SIDBI said in a statement.

NBFCs and MFIs that will receive the funding should have been in business for at least three years and have an external rating of BBB- or superior as on March 31, 2020, SIDBI said.

Qualifying NBFCs are required to have minimum net worth of Rs 20 crore, and a minimum asset size of Rs 50 crore.

The NBFCs should be registered with RBI as investment and credit company (ICC), SIDBI said.

An MFI, too, should be registered as a society, trust cooperative society, company, MAC or NBFC-MFI.