Sidbi, a national development bank that specializes in refinancing small business loans, announced that it would provide 100% financing for MSMEs’ renewable energy projects along with other clean project initiatives.
Under their new credit scheme in collaboration with Tata Power, Sidbi proposes to offer loans of up to Rs 7.5 crore to qualified MSMEs without charging any processing fees in exchange for 25% margin money as security.
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“We encourage MSMEs to make use of our various financial schemes for implementing solar energy and adopting energy-efficient machinery and business processes. We are prepared to offer a 100 per cent loan at an interest rate as low as 7-8 per cent (depending on their credit ratings) for the installation of rooftop and ground-mounted solar power projects,” stated Jay Kumar Gupta, a deputy general manager of the lender.
At the event held by the World Trade Centre and the All India Association of Industries, Gupta stated that this initiative aims at encouraging environmentally responsible and energy-efficient business practises.
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About Sidbi
Sidbi was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be “the principal financial institution for the promotion, financing and development of industry in the small-scale sector and to co-ordinate the functions of the institutions engaged in the promotion, financing or developing industry in the small-scale sector and for matters connected therewith or incidental thereto”.
