SIDBI launches loan products for MSMEs to bolster supply for COVID-19 fight

New Delhi: To help the Micro, Small, and Medium Enterprises (MSMEs) with required financial support, SIDBI has launched two loan products at a concessional rate for ramping up the supply of products used in the fight against the COVID-19 pandemic.

These products will help augment supply of oxygen cylinders, oxygen concentrators, oximeters and essential drugs by MSMEs, Small Industries Development Bank of India (SIDBI) said in a statement.

The principal financial institution engaged in the promotion, financing and development of MSMEs has launched SHWAS (SIDBI assistance to Healthcare sector in War Against Second wave of COVID19) and AROG (SIDBI Assistance to MSMEs for Recovery & Organic Growth during COVID19 pandemic), two new quick credit delivery schemes, it said.

The schemes are devised under the guidance from Government of India which facilitates funding for production and services related to supply of oxygen cylinders, oxygen concentrators, oximeters and essential drugs, it said.

Second wave or massive resurgence of COVID-19 in the country has led to unprecedented burden on health infrastructure of the country.

SIDBI, considering the current distress caused by COVID 19 and being a national emergency, has devised these schemes to cater to help assist healthcare service providers fight against the pandemic.

These schemes envisage 100 per cent funding up to an amount of Rs 2 crore to a MSME unit at attractive interest rate of 4.5-6 per cent per annum, within 48 hours after receipt of all the documents or information.