New Delhi: The Small Industries Development Bank of India, or Sidbi, will receive a $400 million (around Rs2,000 crore) additional financing loan from the World Bank to boost funding to micro, small and medium enterprises, which generate 45% of India’s manufacturing output.
The World Bank’s board of directors gave its approval on 30 April, Bhama Krishnamurthy, Sidbi’s chief general manager, said.
The loan will be used mainly for direct lending to small entrepreneurs. Sidbi also proposes to use the loan for refinancing purposes.
“This will help in Sidbi’s endeavour to support the sector in larger measures and our branches will be able to go nearer to our customers,” Krishnamurthy said over phone from Mumbai.
Sidbi is currently implementing a multi-agency development programme for the small and medium segment. It has already received a $120 million loan from the World Bank. It also has a technical assistance grant from the UK’s Department for International Development and Germany’s Deutsche Gesellschaft für Technische Zusammenarbeit GmbH.