Google announces partnership with SIDBI to offer loans to MSMEs in India

Google has announced entering into a partnership to provide loans to micro and small businesses in India. The company has reportedly merged with Small Industries Development Bank of India (SIDBI), one of India’s top regulatory body for managing the finances of complete licensing and guidelines of small, micro and medium businesses.

The partnership is aimed to launch a $15 million financial loan program to provide micro credit to Indian small and medium scale businesses on time.

Shalini Puchalapalli, Director of Customer Solutions at Google, India, stated that loans to MSMEs will be granted by SIDBI at very competitive interest rates with the loan amounts ranging from $33,728 to $135,000.

It has been claimed that companies, which will meet the criteria for acquiring the loan, will apparently use it for obtaining new machinery and equipment, boosting their production infrastructure and meet their working financial requirements.

Shalini also mentioned that with the loan program, SIDBI will get a chance to work with a broader client segment and exert a positive impact on the social groups. She believes that this move would also prompt other organizations to invest in such mergers and boost the economy.

As per reports, the partnership will value women owned businesses and enterprises that focus on manufacturing of equipment in the country’s fight against the pandemic.

Sivasubramanian Ramann, Chairman and Managing Director of SIDBI cited that the organization is proud to have teamed up with Google to revive the MSME sector in the country.

For the record, Google is the latest tech giant to have claimed investing $10 billion in India in the coming five to seven years, in an effort to provide business loans to various enterprises.

As per speculations, Facebook has also launched a similar program to aid the small and medium sized businesses in South Asian market. Facebook has declared tie ups with disbursement partners that provide loans ranging between $6,720 to $67,200 per annum.