SIDBI launches SHWAS and AROG schemes for COVID preparedness

Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of Micro, Small and Medium Enterprises MSMEs), has launched SHWAS (SIDBI assistance to Healthcare sector in War Against Second wave of COVID19) and AROG (SIDBI Assistance to MSMEs for Recovery & Organic Growth during COVID-19 pandemic), two new quick credit delivery schemes. The schemes are devised under the guidance from the Government of India (GoI) which facilitates funding for production and services related to the supply of oxygen cylinders, oxygen concentrators, oximeters and essential drugs.

SIDMI is launching these new initiatives to help MSMEs quickly augment their facilities which help the nation in augmenting capabilities to fight the pandemic.

On this occasion, Chairman and Managing Director of SIDBI said, “The endeavour is to provide credit facilities to deserving MSMEs that have risen to the occasion in helping the citizens in this hour of need by keeping their activities operational and providing healthcare at all levels.”

These schemes envisage 100 per cent funding up to an amount of Rs 2 crore to an MSME unit at an interest rate of 4.50 to 6 per cent p.a., within 48 hours after receipt of all the documents/information.

On March 25, 2020, SIDBI had also launched SIDBI Assistance to Facilitate Emergency response against coronavirus (SAFE) scheme to provide financial support to all MSMEs engaged in manufacturing of any product or providing any services which are related to fighting coronavirus (such as, hand sanitisers, masks, bodysuits, ventilators, testing labs, etc.). More than 400 MSME units producing products to fight Covid-19 have been sanctioned financial assistance under SAFE (total amount of Rs 178 crore) in FY 2021.