Sidbi Seeks Policy Changes For Free Flow Of Loans

The Small Industries Development Bank of India (Sidbi) has called for necessary institutional and policy changes to ensure free flow of term loans and working-capital loans to small scale sector as the lack of coordination between different funding agencies has led to industrial sickness.

At present, term loans to SSI sector are mainly being provided by State Financial Corporations (SFCs) and working capital loans by commercial banks, leading to delay and lack of coordination in disbursement of funds, Sidbi managing director Sailendra Narain said.

We have received many complaints from SSI units that even after getting the term loan, the working capital loan was not available at appropriate time, Narain said, adding right from day one, they start as a defaulting or sick unit. A beginning has already been made in this direction in the form of