SIDBI sanctions Rs 650-crore loan to AU SFB and Jana SFB

Tags: Economics/Business

The Small Industries Development Bank of India (SIDBI) has sanctioned Rs 650 crore to two Small Finance Banks ,AU Small Finance Bank  and Jana Small Finance Bank.

•  They will use this fund to  to provide loans  to Micro Small and Medium  Enterprises (MSME) and  Micro Finance Institutions (MFIs).
• The financial assistance has been extended out of the Special Liquidity Facility sanctioned by the Reserve Bank of India. 
• This liquidity line has been provided to SIDBI to meet the challenges being faced by the MSMEs due to the prevailing Covid-19 pandemic situation.

Headquarter of Jana Small finance Bank : Bengaluru

Headquarter of AU Small Finance Bank : Jaipur 

SIDBI 

• The Small Industrial Bank of India was set up in 1990 through an act of Parliament.
• It was set up as a principal Financial Institution  for the promotion ,development  and financing of Micro small and Medium  Enterprises in India. 

Headquarters : Lucknow 

• It is owned by the Government of India . 

For details about MSME and its contribution to the Indian Economy see the post of 12 December 2021.