30 November 2020

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SIDBI and CSC signs MOU for providing easy credit to village level entrepreneurs


Small Industries Development Bank of India (SIDBI) signs Memorandum of Understanding (MoU) with Common Service Centres (CSC) aiming to ensure easy credit to village level entrepreneurs (VLEs). Financial support would be provided to village level entrepreneurs operating the Common Service Centres that act as access points for delivery of electronic services. Financial support would be provided through direct financing window. Common Service Centres (CSC), Special Purpose Vehicle (SPV) will approve the list of VLEs requiring financial assistance within 25 km distance of SIDBI Branch Offices. To avail the loan, the VLEs need to submit their CSC project with maximum project outlay of Rs 3.50 lakh and term loan requirement of up to Rs 2 lakh per project.

CSC SPV provides a centralized collaborative framework for delivery of services to citizens through CSCs, besides ensuring systemic viability and sustainability of the Scheme. Further, it aims to develop CSCs as a reliable and ubiquitous IT-enabled network of citizen service points connecting local population with government departments, business establishments, banks, insurance companies and educational institutions, with an impact on primary, secondary and tertiary sectors of the country’s economy. The MoU would enhance financial viability of the CSCs by including additional offerings in their bouquet of products that currently includes services like banking, pensions, digital literacy and tele-medicine.

SIDBI formed in 1990, has been impacting the lives of citizens across various strata of society through its integrated, innovative and inclusive approach. SIDBI has directly or indirectly touched the lives of more than 360 lakh people in the MSE sector, through various credit and developmental measures. CSCs are the access points for delivery of essential public utility services, social welfare schemes, healthcare, financial, education and agriculture services to citizens in rural and remote areas of the country. It is a pan-India network catering to regional, geographic, linguistic and cultural diversity of the country, thus enabling the Government’s mandate of a socially, financially and digitally inclusive society.

Tags : MOU Financial Support Rural area

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