SIDBI offers 100% funding for MSMEs’ green and clean projects
Small Industries Development Bank of India (SIDBI) has announced 100% funding for green and clean projects of MSMEs, marking a significant step towards green financing.
SIDBI is the country's primary financial institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector.
“We invite MSMEs to avail of SIDBI’s financial schemes for installing solar energy and adopting energy efficient machineries and business processes. SIDBI extends 100% loans at interest rate as low as 7%-8% depending on the credit rating of MSMEs for installing rooftop and ground mounted solar rooftop power projects.
We lend upto Rs. 7.5 crore to eligible MSMEs without charging processing fee by taking 25% margin money as security under our new credit scheme in partnership with Tata Power.
Our objective is to promote energy efficient and green business operations to protect the environment,” said Jay Kumar Gupta, Deputy General Manager, SIDBI at an event organised by WTC Mumbai and All India Association of Industries.
Ashwani Dhingra, Zonal Head, Central Bank of India, said, “This year, we aim 61% growth in MSME credit at our Mumbai and Goa Zone from Rs. 6,577 crore as of March 2023 to Rs.
10,618 crore by March 2024. Credit growth to MSMEs is expected to outperform overall credit to industry this year in Mumbai and Goa Zone, which is our largest zone in India.
Consequently, the share of MSMEs in the overall credit outstanding in this zone is targeted to grow from 12% as of March 2023 to 15% by March 2024.”
Dhingra further informed that the bank does not insist on external credit rating for MSME loans upto Rs. 25 crore and entrepreneurs can avail upto 25% of their last financial year’s GST payment as loan under its
