The Small Industries Development Bank of India (SIDBI) has launched a liquidity support scheme for micro, small and medium enterprises (MSMEs) that have been impacted by the COVID-19 pandemic.
The governmental institution for the development of small scale industries said that it has received Rs 15,000 crore from the Reserve Bank of India (RBI) to aid MSMEs.
The central bank provided the capital as part of its Special Liquidity Facility (SLF) of Rs 50,000 crore that it has announced earlier this month for SIDBI, National Housing Bank (NHB) and National Bank for Agriculture and Rural Development (NABARD).
This financial aid to meet shortcomings due to measures placed to curb the spread of COVID-19 will be provided to MSMEs via banks, NBFCs (non-banking financial companies) and micro-finance institutions (MFIs).
"The schemes would cover all eligible entities having investment grade ratings irrespective of the size of the organisation to ensure wider coverage," SIDBI said in a statement.
NBFCs and MFIs that will receive the funding should have been in business for at least three years and have an external rating of BBB- or superior as on 31 March 2020 it added.
Qualifying NBFCs are required to have a minimum net worth of Rs 20 crore, minimum asset size of Rs 50 crore and be registered with RBI as investment and credit company (ICC), SIDBI said.
An MFI, too, should be registered as a society, trust cooperative society, company, MAC or NBFC-MFI.