The World Bank has approved a US $500 million loan for the MSME Growth Innovation and Inclusive Finance Project to improve access to finance for Micro, Small and Medium Enterprises (MSMEs).
The project being implemented by Small Industries Development Bank of India (SIDBI) will be implemented over a period of 5 years.
The project will support MSMEs through direct financing by SIDBI, which is an apex financial institution for promotion, financing and development of MSMEs in India, as also through Participating Financial Institutions (PFIs) across three components. These include support to start up debt financing and risk capital as well as support to service and manufacturing sector financing models.
The Guarantee Agreement was signed by Tarun Bajaj, Joint Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Onno Ruhl, Country Director (India) of World Bank on behalf of the World Bank was signed here today.
The Loan Agreement was signed by Kshatrapati Shivaji, CMD, SIDBI and Onno Ruhl, Country Director (India) of World Bank on behalf of the World Bank.
Funded MSMEs will be the primary beneficiaries. MSMEs for the purpose of this project will be firms that are considered as MSMEs under the MSME Act.