The scheme of Micro-Finance Programme has been tied-up with SIDBI by way of contributing towards security deposits required from the MFIs/NGOs to get loans from SIDBI

All NGOs representing MSMEs and MFIs

Financial assistance to provide for security deposits for lending credit and loans

The Government of India will provide funds for Micro-Finance Programme to SIDBI, which shall be called ‘Portfolio Risk Fund’ (PRF). At present, SIDBI takes fixed deposit equal to 10% of the loan amount. The share of MFIs/NGOs would be 2.5% of the loan amount (i.e. 25% of security deposit) and balance 7.5% (i.e. 75% of security deposit) would be adjusted from the funds provided by the Government of India.

The financial assistance to the MSEs will be provided through NGOs and MFIs the MSEs need to contact these institutions for funding support. For more information on scheme visit : http://www.dcmsme.gov.in/schemes/microfinance.htm