SIDBI has planned to lend more credit to micro lenders

By | June 20, 2011

A recent press report said that the Small Industries Development Bank of India is planning to gradually increasing its quantum of finance to micro lenders. The report also said that institution plans to disburse about Rs.1000 crore to MFIs in the current financial year while it was Rs.940 crore last year.

The report further said that even though the situation of MFI sector is fluid with its operations of Andra Pradesh based MFI crippled due to the state law and the bill being still debated, the institution wants to support MFIs so that it can reach out to the financially excluded, reduce poverty and improve the quality of life.

Mr.N.K.Maini in his press meet said that the bank has recently sanctioned loans aggregating around Rs.300 crore to five MFIs. Further the tenure of the loan ranges from three to five years showing the bank’s commitment to MFI sector.

Another report stated that the Banks are processing the loan applications of credit-starved MFIs which were stopped when the Andhra Pradesh micro finance (the regulation of money lending) act in October was officially announced. As per the information from various Banks, the credit proposals of about Rs.1600 crore are now being processed to various MFIs.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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