Sidbi may take express loan to more MSMEs

Sidbi is planning to expand the base for its digital-based Express Loan for MSMEs. Sidbi deputy MD Sudatta Mandal said this the Financial Awareness conclave organised by Bengal Chamber of Commerce. He also pointed out that under the product, loans are sanctioned within 10 minutes.

According to Mandal, Express Loan was initially introduced for procurement of machinery and the ticket size was Rs 1 crore.

“It has been increased to Rs 3 crore for existing customers. Once the portfolio matures, we would like to extend it across all the lending products,” he added.

Mandal went on to say that there was a need to assess proper credit worthiness of MSMEs. “The methodology used by credit rating agencies have an inherent bias against MSMEs because of their size. Very few MSMEs get AAA rating from leading agencies. Due to this, cost of borrowing also goes up,” he added.