Small Industries Development Bank of India (SIDBI) has covered over 14 lakh units under the credit guarantee fund scheme for MSMEs, according to N.K. Maini, its Deputy Managing Director.
Inaugurating INTEC 2014 here on Friday, he said that through the credit guarantee fund trust SIDBI has tried to create a culture of lending to micro, small and medium-scale enterprises (MSMEs) based on the strength of their project and not on the strength of the collateral. SIDBI has covered over 14 lakh units for loans of about Rs. 70,000 crore under the scheme.
It disbursed Rs. 52,000 crore loans to over 12 lakh MSMEs last financial year and this included direct finance, refinance and micro finance. In Coimbatore, SIDBI’s direct lending grew by 30 per cent last year and is expected to grow at the same or higher rate this year too. It has also sanctioned loan for an industrial estate that Coimbatore District Small Industries’ Association (CODISSIA) plans to set up here on about 500 acres.
During the last three years, SIDBI has repositioned itself to fill in the gaps in the MSME eco-system. It is focusing on receivable financing and covered over 10,000 units last financial year under receivable finance. It is in the process of promoting factoring. The other areas of focus are risk capital, service sector, micro financing, and sustainable development of MSMEs. SIDBI has also set up a website to promote entrepreneurship. Anyone who wants to become an entrepreneur will be assisted, he said.
P.N. Balasubramanian, chairman of INTEC 2014, said that industries are positive of growth with a new Government at the Centre.
R. Ramachandran, president of CODISSIA, said that trade fairs and expos help improve the economy and enable units to upgrade technology.
