SIDBI & GAME onboards 18 cohorts to NBFC Growth Accelerator Program

The joint initiative by SIDBI and GAME is expected to bolster the lending capacity of MSME focused NBFCs

The Small Industries Development Bank of India (SIDBI) and the Global Alliance for Mass Entrepreneurship (GAME) have selected 18 cohorts for their NBFC Growth Accelerator Program (NGAP). Designed as a five-month initiative, the programme will offer mentorship from domain experts in areas such as risk management, corporate governance, and technology.

Originally, the programme had attracted 40 applications, out of which 18 were chosen. It levies a fee of Rs 1 lakh per Non-Banking Financial Company (NBFC), a cost that is nearly 80 per cent subsidised.

This collaboration between SIDBI and GAME aims to enhance the lending capabilities of NBFCs focused on Micro, Small and Medium Enterprises (MSMEs). The initiative seeks to facilitate more reasonable credit rates for smaller NBFCs, thereby strengthening capital flow into the MSME sector.

"The programme is designed to enhance institutional funding for the MSME sector. Participating NBFCs will gain valuable insights through specific advice, peer interactions, and structured evaluations," said Sivasubramanian Ramann, chairman and managing director of SIDBI.

Under the programme's criteria, NBFCs with Assets Under Management (AUM) ranging from Rs 25 crore to Rs 200 crore and net owned funds around Rs 10 crore are categorised as small NBFCs. Upon completion of the programme, these NBFCs are expected to be better positioned to secure funding.

"We anticipate that at least 80 per cent of the cohort will be eligible for funding following the programme," stated Ravi Venkatesan, founder of the Global Alliance for Mass Entrepreneurship. He further added that the initiative aims to build the capacities of more than 100 NBFCs over the next three years, which in turn will bolster the flow of credit to MSMEs.