Frequently Asked Questions and Answers 

Q: What is MSMEFDP?
A: MSMEFDP is the World Bank led multi-agency and multi-activity project for MSME Financing and Development being implemented by SIDBI.

Q: What is the objective of the project?
A: The Project is aimed at making MSME lending an attractive and viable financing option as also facilitate increased turnover and employment in the sector.

Q: Who are the partners of MSMEFDP?
A : The partners under MSMEFDP are World Bank, DFID, UK, KfW and GtZ Germany.

Q : Who is the nodal agency of the project?
A : Department Of Financial services, Ministry of Finance, Government of India is the nodal agency.

Q: What are the components of the MSMEFDP?
A : The Project has three major components. Credit facility from the IBRD and KfW Germany, Risk Sharing Facility, Technical Assistance from DFID, UK and GTZ, Germany.

Q : What are the financial limits of these components?
A : Credit facility from IBRD and KfW is USD 120 mio, and 5.25 mio (Euro 43.5 million) respectively. Technical Assistance consists of USD 37 mio ( 20 million GBP) from DFID, USD 1.2 mio (1 million Euro) from KfW and USD 6 mio (5 million Euro) from Gtz in kind.

Q : What is the tenure or the utilization period of such facilities?
A : Fifteen years and twelve years in respect of credit facility from IBRD and Kfw respectively. As regards Technical Assistance the tenure for DFID TA is seven years. TA from KfW and Gtz is for a period of four and three years respectively.

Q : What is BMO?
A : BMO stands for Business Membership Organisation

Q : What is PMD?
A: PMD stands for Project Management Division. It is a department within SIDBI that is charged with the responsibility of implementing the MSMEFD project.

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