The Small Industries Development Bank of India (Sidbi) will shortly launch a Rs 500-crore venture capital fund for small companies. | |
| "Small Industries Development Bank of India has identified venture capital as a thrust area for the next five years to support innovative and high-risk small and medium enterprises (SME) ventures," Ajay Kapur, CEO of the Sidbi Venture Capital Fund, said at a PHDCCI seminar here today. |
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| He said the Rs 500-crore fund would address the perennial problem of availability of timely and adequate financial support to SMEs. Apart from setting up a VC fund, Sidbi has also drawn up plans to fund companies at the state-level and tap international sources for cheaper funds. |
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| "The Sidbi Credit Guarantee Trust Fund for Small Industries (CGTSI), which has a corpus of Rs 2,500 crore, is also geared up to offer collateral free loans worth Rs 1,200 crore to SMEs in the next three years," NK Maini, CEO, CGTSI, said. |
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| CGTSI, which will offer loans through a single-window facility, targets to provide a maximum Rs 25 lakh to small companies. |
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| Sidbi's credit guarantee arm has so far given loans worth Rs 294 crore to 17,625 units. |
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