Press Information Bureau

Government of India

Ministry of Finance

26-August-2011 17:20 IST

Loans by SIDBI

Small Industrial Development Bank of India (SIDBI), set up in 1990 under an Act of Parliament, is the principal financial institution for the promotion, financing and development of industry in the Micro, Small and Medium Enterprises (MSME) sector and to co-ordinate the functions of the institutions engaged thereof. The details of credit disbursement by SIDBI to the MSME sector for the last three Financial Year and current Financial Year are given below:

            Since its inception, SIDBI has been providing refinance / indirect finance support to Primary Lending Institutions (PLIs). Its channelization of refinance provided much needed liquidity support to banks during the period of recent global financial crisis when liquidity had dried up in the system. All loans of SIDBI, both direct and indirect, are given to MSMEs.

            This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Lok Sabha.

DSM/SS/SL

Refinance support ensures liquidity for MSME lending through channelisation to primary lending institutions and promotes sector development. SIDBI functions as the principal financial institution for the MSME sector, providing direct loans and refinance / indirect finance support to Primary Lending Institutions. Its channelisation of refinance has been used to supply liquidity to banks and PLIs during periods of tight market liquidity, and all SIDBI lending-direct and indirect-is directed to MSMEs.