SIDBI is providing the short term 90 day loan to small businesses

As the Reserve bank of India has announced the INR 15,000 crore of liquidity facility, SIDBI, The small industries development bank of India has also announced that they are lending short term loan to the small businesses. It can be through bank or via non bank financiers as well.

The circular says-“In the wake of covid-19 pandemic, the Reserve Bank of India has provided a Special Liquidity Facility (SLF) of ₹15,000 crore to Sidbi to enable it to provide liquidity support to micro, small and medium enterprises (MSME) sector and meet sectoral credit needs,”

The scheme is good enough to cover the entities with investment grade rating no matter what is the size of the organization. Things like bigger peer, limited cash flow, small businesses are suffering the most from the pandemic.

The RBI governor ShaktiKanta Das gave his speech on 17th April and said that all the Indian financial institutes like SIDBI, The small industries development bank of India, NABARD, National bank for agriculture and rural development and NHB, national housing bank are playing the essential role in meeting the long term fund requirements to the rural and agriculture sectors, housing finance companies, MFI, NBFC and to the small industries as well.

In his words- “These All India Financial Institutions raise resources from the market through specified instruments allowed by the Reserve Bank, in addition to relying on their internal sources,”