The Asian Development Bank (ADB) will loan $ 300-million to help India grow its micro, small and medium enterprises, the bank said in a statement here. The statement said, “The ADB Board of Directors today approved a sovereign loan of $ 50-million and a partial credit guarantee of up to $ 250-million for the micro, small and medium enterprise (MSME) development project“.
The $ 50-million loan will be offered to the government-owned Small Industries Development Bank of India (SIDBI) to finance businesses that have grown very large to use conventional micro finance.
The program also helps the Union Government’s attempts to develop the sector to raise inclusive growth.
About 30,000 MSMEs are anticipated to gain from the project.
Peter Marro, Senior Investment Specialist in ADB’s South Asia Department, said “The objective of the project is to remove bottlenecks to MSME financing and development, thus helping pave the way for growth, competitiveness and employment creation”.
SIDBI will be the borrower and implementing organization for the loan, which will be given over 5 years. The PCG facility will be provided for 3 years after approval from ADB’s Board of Directors.