In the duration of the Coronavirus pandemic and to assist COVID-19-affected enterprises. The RBI has given SIDBI (SLF-2) another liquidity facility of Rs.15000 crore to meet the MSME firm’s liquidity and credit needs. Special programs are being created to support MSMEs through banks, NBFCs, and MFIs to kick off the SLF-2. To ensure broader coverage, the Scheme to Assist MSME Liquidity Needs through Intermediaries would include all qualified firms with investment-grade ratings, regardless of the organization.

SPECIAL LIQUIDITY FACILITIES (SLF-1)

Last year, the RBI supplied SIDBI with a particular liquidity facility of Rs.15000 crore (SLF-1). As a result, the SIDBI has developed specific liquidity programs to assist MSME sectors that have been affected by the COVID-19 outbreak.

SPECIAL LIQUIDITY FACILITIES (SLF-2)

The SIDBI has announced the following special liquidity schemes as per the Scheme to help MSME sector liquidity needs through mediators for support to MSME sectors afflicted by the COVID-19 epidemic to operationalize the SLF-2:

• Exceptional liquidity support for MSME through MFI(SLS-II-MFI 2021).
• The Special refinance Scheme (SLS-II-SRS 2021).
• NBFCs provide great liquidity support for MSME (SLS-II-NBFC 2021).

SPECIAL REFINANCE SCHEME (SLS-II-SRS)

The Scheme intends to offer qualifying PLIs with refinancing support to help them meet the liquidity needs of their Micro and Small Business end-borrowers.

The following are the qualifying criteria and other requirements for the Special Refinance Scheme 2021 for MSME Liquidity Support:

ELIGIBILITY FOR SCHEME

This plan is open to commercial banks (public, private, and foreign) and small finance banks (SFBs). SIDBI will provide support under the program to scheduled banks with large existing portfolios of MSEs/microcredit and sound financials who meet the following criteria:

Small Finance Bank