Small Industries Development Bank of India (SIDBI) today said more than Rs 276 crore loans have been disbursed under its Prayaas programme to over 18,000 small entrepreneurs who are at sustenance level and aspire to reach an enterprise level.
The Prayaas scheme offers credit up to Rs 5 lakh loan in partnership with financial and non-financial intermediaries to women and micro entrepreneurs at the bottom of the pyramid at an affordable rate, SIDBI said in a statement.
SIDBI has a dedicated corpus of Rs 1,000 crore earmarked for the programme to provide loans for livelihood activities at interest rates not exceeding 13 per cent, according to the programme details available on SIDBI’s website.
The addressable credit demand of Rs 11.90 lakh crore in the micro enterprise segment, women entrepreneurs accounting for around 20 percent of the total proprietary concerns in India, and the cost of micro credit remaining on a higher side are reasons driving SIDBI to come up with focused interventions to support entrepreneurs in livelihood space, the bank noted.
In order to digitize the Know-Your-Customer (KYC) process and the process of e-signing and e-stamping of various documents of borrowers, SIDBI had also launched the Digital Prayaas scheme in August 2021.
Under the scheme, SIDBI had also tied up with BigBasket to onboard its delivery partners across the country and provide loans for the purchase of e-bikes and e-vans.
To support rural micro and small enterprises, SIDBI had also announced sanctioning Rs 650 crore in financial assistance in January this year to two small finance banks AU Small Finance Bank and Jana Small Finance Bank to enable credit to Covid-hit units through low rated or unrated small non-banking financial companies (NBFCs) and microfinance institutions (MFIs).