The Small Industries Development Bank of India (SIDBI) is partnering with Kolkata-based microfinance institute VFS Capital, to extend loans to Micro, Medium, and Small Enterprises (MSMEs).
This scheme will offer loans up to Rs 5 lakh at an interest rate of 13% per annum, as per sources cited by PTI.
VFS Capital gives loans to promising and existing entrepreneurs who require funds for seed money or working capital. This helps firms access resources and increase their capacity and efficiency.
Under this scheme, the institute plans to disburse Rs 30 to 40 crore in this financial year, according to Kuldip Maity, Managing Director and CEO of VFS Capital.
The company is also looking to scale its loan book to around Rs 1200 crore by the end of FY 23. It reported a loan book of Rs 805 crore in FY 22.
VFS Capital operates in 13 states including West Bengal, Assam, Tripura, Bihar, Jharkhand, Haryana, and Uttar Pradesh. It plans to expand its geographic presence in the north-western regions by opening new branches in Rajasthan by the end of this month.
As per the company, it has 235 branches across the country and plans to expand to 270 within this fiscal year.
Edited by Akanksha Sarma
Press Trust of India