SIDBI, the national development bank focused on refinancing loans for small businesses, has unveiled a significant initiative to provide complete financing to Micro, Small, and Medium Enterprises (MSMEs) for green energy projects and other eco-friendly endeavors.
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Speaking at an MSME financing event, Jay Kumar Gupta, Deputy General Manager of SIDBI, expressed, “We urge MSMEs to leverage our diverse financial programs for the installation of solar energy systems and the adoption of energy-efficient machinery and business processes. We are prepared to extend 100% loans at competitive interest rates ranging from 7% to 8% (subject to credit ratings) for rooftop and ground-mounted solar power projects.”
Through a new credit scheme developed in partnership with Tata Power, SIDBI is offering loans of up to Rs 7.5 crore to eligible MSMEs. Notably, the bank has waived processing fees for these loans, requiring only 25% margin money as security. This initiative is geared towards promoting energy efficiency and green business practices, contributing to environmental preservation.
Gupta made this announcement during an event organized by the World Trade Centre and the All India Association of Industries. This move is expected to motivate MSMEs to embrace sustainable and environmentally friendly approaches, aligning with global initiatives to combat climate change and advocate for clean energy solutions.