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<h1>External Commercial Borrowings by SIDBI allowed for on lending to MSMEs, requiring hedging and route based approvals.</h1> SIDBI is authorised to avail External Commercial Borrowings for on lending to the MSME sector, with on lending permitted in INR or foreign currency; INR on lending requires full hedging of foreign currency risk by SIDBI, while foreign currency on lending is limited to beneficiaries with a natural hedge. ECB for on lending up to fifty per cent of SIDBI's owned funds is under the automatic route, amounts beyond that require approval and are subject to an annual ceiling. Proceeds must be used only for permissible end uses and other ECB conditions remain applicable.