We are hoping to be closer to 25% of MSME lending in India in 2-3 years: SIDBI’s Prakash Kumar

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Key Points

SIDBI has also set up a Cluster Development Fund (SCDF), with support from the Reserve Bank of India (RBI), to extend support to state governments for infrastructure development of MSME clusters...

SIDBI has been working in this area and thanks to the Reserve Bank of India which allocated funds out of the priority sector shortfall from banks that can actually be utilised for lending to the state government(s) for improving the condition of these clusters...

We have plans to launch it in eight to 10 clusters in the coming months, and to try to onboard smaller micro MSMEs to take care of their working capital problems.. ET: What is the kind of interest that you have seen from micro enterprises to get onboarded on to the platform?..

Obviously, you are working with some loan service providers on the ground that can actually work with these MSMEs, help them complete the onboarding process, teach them how to use this feature to get invoice discounting, and also help us in our collections because SIDBI has a limited network..

Six to seven years ago, we ran programmes in clusters to encourage MSMEs to take up energy audits and identify the investments required to make their processes energy efficient..

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