Small Industries Development Bank of India (SIDBI) has always been the savior towards daring entrepreneurs. It has always lent to institutions with a good track record of transparency in its functioning. Plans are afoot to disburse around Rs 1,000 crore in credit to microfinance institutions (MFIs) during 2011-12, which is 19 per cent more than the loaned amount last fiscal.
“We are not shying away from lending to MFI sector in the recent time. Rather, we do have a target of disbursing around Rs 1,000 crore of loan in the current fiscal against Rs 840 crore of advances last fiscal,” SIDBI Deputy Managing Director N K Maini told reporters on the sidelines of a recent seminar on ‘Microenterprise Financing’. SIDBI, which lends money to the MSME sector, is also trying to rope in foreign private equity. Around Rs 46,331 crore has been disbursed to MSME sector in Fiscal Year 2011, which is up by 22 per cent over the same period last year. SIDBI’s refinance to banks grew by 35 per cent to Rs 22,900 crore last fiscal.
