Small Industries Development Bank of India (SIDBI) has entered into a collaboration with Google for having a social impact lending programme, entailing financial assistance up to ₹1 crore at competitive interest rates targeted at micro- enterprises.

The collaboration brings a corpus of $15 million (about ₹110 crore) to micro-enterprises as a crisis response related to Covid-19 to reinvigorate them, SIDBI said in a statement.

The collaboration envisages a loan programme targeted at micro enterprises (having turnover up to ₹5 crore), with loan sizes ranging between ₹25 lakh to ₹1 crore, being implemented by SIDBI, which is an All India Financial Institution (AIFI) engaged in the promotion, financing and development of Micro, Small and Medium Enterprises (MSMEs)

The AIFI emphasised that the major focus under the programme will be on enterprises run by women entrepreneurs, with suitable interest rate concession also envisaged for such enterprises.

Sivasubramanian Ramann, Chairman and Managing Director, SIDBI, noted that this one-of-a-kind program also marks SIDBI’s launch of a paperless journey to its customers from onboarding to the disbursal stage.

“With renewed hope in making a full and vital economic recovery, we look to this collaboration to enhance our efforts in expanding the sector’s access to credit and are very eager to see the constructive impact that we can achieve together,” he said.

Sanjay Gupta, Vice President & Country Manager, Google India, said, “ In joining hands with SIDBI, which has a deep understanding of the growth needs of this large and dispersed ecosystem, we’re pleased to expand our support to these enterprises.”

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