The World Bank will extend a US$200 million loan to Small Industries Development Bank of India (Sidibi) by September to enhance credit to small companies.
"The World Bank has agreed to give a US$150 million credit line and US$50 million as grant support to Sidbi and the agreement will be signed by September," said Sidbi chairman V K Chopra.
The nodal bank for small- and medium-sized industries (SMIs) is also holding talks with international lending agencies such as The Asian Development Bank and KFW of Germany to raise more funds for the sector.
Sidbi had already set up a Rs100 billion SSI Fund to give low-cost loans to small-scale industries (SSIs) at 2 per cent less than it's prime lending rate (or 9.5 per cent) and is also providing loans through state finance corporations at 7.5 per cent.
