MSME Financing and Development Project (MSMEFDP)

Introduction

SIDBI is implementing a multi agency / multi activity Project on Financing and Development of Indian MSMEs. While SIDBI has been assigned with the responsibility of implementing the project, the Department of Financial Services, Ministry of Finance, Government of India is the nodal agency for the same. The IBRD, Department for International Development (DFID) UK, KfW Germany and GTZ Germany are the international partners in the Project. The Project is aimed at making MSME lending an attractive and viable financing option as also facilitate increased turnover and employment in the sector. In order to achieve its aims, the Project, besides upgrading direct flow of credit to MSMEs, addresses demand side issues of credit and streamlining access to qualitative financial and non-financial enterprise oriented services. This is being done with support of Technical Assistance to be utilised for strengthening the credit information system, credit rating, credit scoring, structuring of innovative products, capacity building of the participating banks, policy and regulatory issues and promotion of market oriented business development services for the sector.

Components

The Project has three major components: 


a Credit facility from the IBRD and KfW Germany 

b A Risk Sharing Facility

c Technical Assistance from DFID, UK and GTZ, Germany