The World Bank extended US$120 million in assistance to India to help boost credit to small companies on Friday.
The Small Industries Development Bank of India (Sidbi) would be the nodal bank to implement the Loan and Guarantee Agreement of Small and Medium Enterprise scheme worth about US$180 million.
In an official release the World Bank said it would provide US$120 million loans, US$11.4 million will come as counter part funding of Sidbi and balance US$49 million would be provided from bilateral and SECO Trust fund.
The scheme is aimed at a multilateral multi-activity flagship project on SME financing and development in India.
The loan from World Bank forms a part of the larger SME Fund of Rs 100 billion (US$2.2 bn) earlier announced by the government and SIDBI.
