SIDBI's new loan scheme will benefit SC/ST entrepreneurs, stresses GM

Jalandhar, December 22

The new financial scheme, ‘Saath’, of Small Industries Development Bank of India (SIDBI) will benefit scheduled caste and scheduled tribe entrepreneurs in running MSMEs, said SIDBI’s general manager and Chandigarh Regional Office Head Balbir Singh, in the presence of National Commission for Scheduled Castes (NCSC) Chairman Vijay Sampla, in Jalandhar on Thursday.

Support for small businesses

The ‘Saath’ scheme aims to support MSMEs (both manufacturing and service sectors), which are promoted by SC/ST entrepreneurs. — Balbir Singh, Regional SIDBI Head

While speaking on the occasion, Sampla said, “The new loan scheme, ‘Saath’, is another effort to help SC entrepreneurs in flourishing their businesses. Though the SC entrepreneurs from across the country can take the benefit of the scheme, I am thankful to the SIDBI for considering my request for keeping special focus on assisting the MSMEs based out of Hoshiarpur district and Phagwara (Kapurthala district).”

On December 28, Chairman and Managing Director of SIDBI Sivasubramanian Ramann will address over 500 entrepreneurs, and will explain the benefits of the scheme, at a special event in Hoshiarpur.

Sampla will grace the event as the chief guest. Many entrepreneurs fulfilling the eligibility are likely to get the benefits of the scheme during the event.

Sharing more details about the scheme, Balbir said, “The ‘Saath’ scheme aims to support MSMEs (both manufacturing and service sectors), which are promoted by SC/ST entrepreneurs. Under the scheme, SC/ST entrepreneurs can avail the benefits of term loan assistance (on relatively easy terms) for establishment of new or a greenfield unit or for expanding and modernising the existing units, coupled with incentive structure. The term loan assistance will be provided to such units for the acquisition of land, the construction of factory or office building, equipment, plant and machinery and other fixed assets.”

SIDBI GM said that each borrower could take the loan from Rs 25 lakh up to Rs 3 crore, while they would have to repay the amount within seven years (including the moratorium period of upto two years). He added that the loans extended under the scheme cannot be used for repayment of earlier loans.

He further explained that priority would be given to those units that are run by SC-ST entrepreneurs, which have already received funds under the ‘Stand-up India’ scheme of the Government of India. Also, the entrepreneur should contribute a minimum of 20 per cent of the project cost in the existing unit, and those making new units will have to contribute a minimum of 25 per cent of the project cost.