Sidbi to provide liquidity support to NBFCs, MFIs with 90-day term loans

NBFCs and MFIs have been hit on two fronts, with collections dipping due to the covid-19 lockdown, and the three-month moratorium extended to their borrowers

The Small Industries Development Bank of India (SIDBI) has designed schemes to provide liquidity support to the MSME sector by extending term loansto non-banking financial companies (NBFCs) and microfinance lenders (MFIs) and banks . The move follows the Reserve Bank of India (RBI)'s provision of a special refinance facility of Rs 50,000 crore to all India financial institutions, such as National Bank for Agriculture and Rural Development (Nabard), SIDBI and National Housing Bank (NHB). The tenor of these loans will be 90 days but an extension can be given on a case to case basis.

Of the Rs 50,000 crore