SIDBI schemes for special liquidity support for MSMEs

In wake of the COVID-19 pandemic, SIDBI, continuing its responsiveness, has launched special schemes for supporting MSMEs through banks, NBFCs and MFIs. This scheme is supported by the special liquidity facility of INR 15,000 Cr provided by the Reserve Bank of India to SIDBI, to support MSME sector and meet sectoral credit needs. 

These schemes cover all eligible entities having investment grade ratings irrespective of the size of the organization to ensure wider coverage. 

Key Features and Requisites

  Scheme for liquidity support to MSMEs through NBFCs Scheme for liquidity support to MSMEs through MFIs Special refinance scheme for MSE to provide liquidity support
Objective To provide liquidity support to MSMEs impacted due to COVID-19, through NBFCs including Fintech NBFCs. The scheme would provide resource support to NBFCs by way of term loans to ensure operational continuity and promote onward lending to MSME sector To provide liquidity support to MSMEs impacted due to COVID-19, through MFIs. The scheme would provide resource support to MFIs by way of term loans to ensure operational continuity and promote onward lending to MSME sector To support the MSEs by facilitating flow of credit to this sector by ensuring sufficient liquidity in the hand of intermediary Financial Institutions
Type and Eligibility
  • Registered with RBI as Investment and Credit Company (ICC)
  • In business for 3 years
  • Have Minimum Net Owned Funds of INR 20 Crore and Minimum Asset Size of INR 50 Crore
  • Have an external rating of 'BBB-' or superior (as on March 31, 2020)
  • Be in compliance with applicable regulatory requirements
  • Promoter/Entity should not be in any RBI blacklist or defaulters list
  • Capital Adequacy ratio to be above RBI requirements, at all times in past 24 months 
  • ln operations for 3 years
  • Registered as Society, Trust, Company/Section 8 Company, NBFC-MFls, Co-operative Society and MACS
  • Have an external rating of 'BBB-' or superior (as on March 31, 2020) and minimum MFI grading of ''MfRS''
  • Promoter/Entity should not be in RBI blacklist or defaulters Iist
  • Capital Adequacy ratio not below RBI requirements, any time in past 24 months (applicable for NBFC-MFls)
  • Comply with applicable regulatory guidelines.

Scheduled commercial banks (Public, Private, Foreign) and Small Finance Banks (SFBs).

SIDBI's assistance will be available under the scheme to those scheduled banks having sizeable outstanding portfolios to MSEs/micro-credit and sound financials with following eligibility criteria:

For Banks (other than SFBs):

  • In operation for a period of 3 years
  • Earned profit in at least 2 out of last 3 years
  • Following based on last audited balance sheets viz.
  • Net worth of not less than INR 100 Cr
  • Capital to risk weighted assets of not less than 9%
  • Level of Net NPAs not exceeding 10%

For SFBs

  • The SFB/previous entity prior to conversion to SFB (taken together) should have earned profits during at least 2 out the last 3 years
  • Comply with the following: 
    • Net worth ≥ INR 100 Cr
    • CRAR ≥ 15%
    • Gross NPA ≤ 7%
Eligibility Activity/Beneficiaries Facilities extended to MSMEs for bonafide business purposes Facilities extended to microfinance borrowers/clients by the MFls
  • Eligible Activities: As defined in section 2(h) of the SIDBI Act
  • Units satisfying definition of micros and small enterprises as per Mirco, Small and Medium Enterprises Development (MSMED) Act, 2006
Tenor The loan shall be repaid in bullet instalment after 90 days from date of drawl or such date as may be decided by the bank The loan shall be repaid in bullet instalment after 90 days from date of drawl or such date as may be decided by the bank Generally, 90 days. In deserving cases could be extended longer (to be reset every 90 days, linked to prevailing repo rate)
Security Need based security as per bank's extant norms Need based security as per bank's extant norms As per the General Agreement
Processing Fee 0.10% of sanctioned amount subject to a maximum of INR 5 Lakh along with applicable GST 0.10% of sanctioned amount subject to a maximum of INR 5 Lakh along with applicable GST  

Helpline numbers (Between 10 am to 6 pm on all working days)

Scheme for special liquidity support to MSMEs through NBFCs: 8238804670

Scheme for special liquidity support to MSMEs through MFIs: 8795818198

Special Refinance scheme for MSE to provide liquidity support: 9167060570