SIDBI Emergency Loan Scheme During Lockdown
Last Updated : April 15, 2020, 5:51 p.m.
After the lockdown due to the Coronavirus Disease, many small scale industries are going through a financial crisis in India. They are unable to meet out their manufacturing expenses due to the scarcity of funds. Therefore, the Small Industries Development Bank of India is giving an emergency working capital to such industries of up to INR 2 Crores. The loan will be disbursed within 48 hours to the small scale industries. Therefore, you must take a look at the SIDBI emergency loan scheme during lockdown. See the rate of interest charged on this loan and the SIDBI is giving this loan under its safe scheme.
Terms and Conditions of the SBI Extended Credit Scheme
- The medium and small scale industries can take an extended loan of up to 2 crores.
- 5% is the rate of interest chargeable in this loan.
- This loan is given under the Limit of SAFE loans.
- MSMEs involved in the manufacturing of masks, gloves, hand sanitizers, bodysuits, headgear, ventilators, goggles, and shoe-cover can take this loan.
- SIDBI has introduced this loan to fight the Coronavirus Disease.
Purpose of the Emergency Loan
You must go through the purpose of taking this loan and see which MSMEs can apply for this loan.
- Masks Manufacturing Industries
- Gloves Manufacturing Industries
- Hand Sanitizers Manufacturing Industries
- Bodysuits Manufacturing Industries
- Head Gear Manufacturing Industries
- Shoe-Cover Manufacturing Industries
- Goggles Manufacturing Industries
- Ventilators Manufacturing Industries
Acquire More Equipment :- As the number of Coronavirus patients are increasing day by day, so it is necessary to take precautionary measures. Therefore the MSMEs dealing in the manufacturing of such products that are helpful to treat Coronavirus can this loan. Acquiring more equipment s will increase their productivity so that more and more individuals get the products.
Meet the Demands :- Once theses MSMEs have enough funds, they can easily produce more and more essential products for the Coronavirus Prevention and meet the demands of the individuals. So the SIDBI Emergency Loan Scheme during Lockdown can be helpful for such industries.
Purchase more Raw Materials :- The Masks manufacturing Industries needs a lot of clothes as a raw material. So you can increase the purchases of raw material and automatically your productivity will increase. Thus, this emergency loan from SIDBI can help the nation to fight this pandemic disease.
Conclusion
Now you know all the terms and conditions of this emergency loan from SIDBI and the purposes for which you can use the loan amount. The SIDBI disburses this loan within 48 hours at an interest rate of 5% only. So take the loan, utilize the funds effectively and fight firmly for the pandemic disease.