Google to chip in Rs 110 cr for MSME lending project in pact with Sidbi

Sidbi anchors programme for micro enterprises with loans up to Rs 1 cr at subsidised interest rates

Small Industries Development Bank of India (Sidbi) has inked a pact with Google for pilot social impact lending with financial assistance up to Rs one crore at subsidised interest rates to micro enterprises.

Google India Pvt Ltd GIPL brings a corpus of $15 million (approx Rs 110 crore) to micro enterprises as a crisis response related to Covid-19 to reinvigorate the MSME sector in India, Sidbi said in a statement.

The partnership envisages a loan programme targeted at micro enterprises (having turnover up to Rs five crore), with loan sizes ranging between Rs. 25 lakh to Rs. 1 crore.

Major focus under the programme shall be on enterprises run by women entrepreneurs, with suitable interest rate concession also envisaged for such enterprises.

Sanjay Gupta, Vice President & Country Manager, Google India said right at the outset of COVID-19, it had started a series of efforts that responded to the fact that these businesses have been disproportionately impacted by the pandemic.

Sivasubramanian Ramann, IA&AS, Chairman and Managing Director of Sidbi said, the institution started various programs for an emergency response to the sudden advent of COVID19 such as SAFE, SAFE plus scheme, AROG, and SHWAS. This partnership also marks Sidbi’s launch of a paperless journey to its customers from on-boarding to the disbursal stage.