Financial institution Small Industries Development Bank of India (SIDBI) today said it expects about $600 million from multi-lateral agencies, including the World Bank, during the current fiscal for providing credit to micro, small and medium enterprises sector.
"We expect $300 million loan from the World Bank and another 30 billion yen Japan International Cooperation Agency (JICA) in 2010-11," SIDBI Chairman and Managing Director R M Malla said on the sidelines of its 20th foundation day function here.
Of the total World Bank loan, $200 million is for the micro credit while remaining $100 million would be utilised for the SME sector growth, he said.
Malla said that JICA fund worth 30 billion yen (about $300 million) would be for used financing energy efficient projects of MSMEs, he said. Last year, the World Bank approved $400 million loan to the SIDBI to improve access to credit for the SME sector.
The credit facility is utilised for providing long-term and working capital loans to SMEs in low-growth states, he said, adding that of the total fund about $150 million has been utilised so far.
Talking about its growth journey, Malla said that the institution has disbursed over Rs 1,60,000 crore to MSMEs and benefited more than 2.15 crore person since its inception. Rating arm of the institution, SME Rating Agency of India, launched first of its kind green rating for the sector.
This rating is optional for SMEs and will be given to companies which are energy efficient and adopt green technology, he said.
Companies getting the highest green rating would get loans at concessional rate, he said, adding concession can go up to 2 per cent. At present, the Prime Lending rate of SIDBI is 11 per cent, he added.