SIDBI sanctions a ₹1,000 crore loan to the Shri Kshethra Dharmasthala Rural Development Project
The Small Industries Development Bank of India (SIDBI) has extended a loan of 1,000 cro to the Karnataka-based Shri Kshethra Dharmasthala Rural Development Project (SKDRDP) under its PRYAAS program for direct lending to micro-enterprises under partnership agreements.
SIDBI formulated the PRAYAAS program to help microfinance clients to expand/diversify their business and need anywhere from 50,000 to 5 lakh in support, commonly known as the ‘missing middle segment’.
The program aims to significantly improve access to finance, lower interest rates for emerging borrowers and support business development.
SIDBI Chairman and CEO S. Ramann stated that SIDBI’s mission through PRAYAAS is to digitally connect the micro-segment entrepreneurs and serve the “missing middle” segment by providing affordable credit.
“The program focuses on women, who we believe are key pillars in developing the economy and in instilling entrepreneurship in future generations.
“Under PRAYAAS, SIDBI seeks development-focused partnerships in underserved and underserved segments to encourage the spirit of self-reliance and increase enterprise empowerment,” he said.
A charitable foundation
SKDRDP is a non-profit foundation sponsored by Padma Vibhushan awardee and Rajya Sabha member Veerendra Heggade.
The project focuses on empowering people through the organization of self-help groups (SHGs) modeled on liability communities and provides infrastructure and financing through microcredit for the rural population. SKDRDP works as a Banking Business Correspondent and Business Facilitator (BC and BF) in all areas of its activity.
https://www.thehindubusinessline.com/money-and-banking/sidbi-sanctions-1000-crore-loan-to-shri-kshethra-dharmasthala-rural-development-project/article66607140.ece SIDBI sanctions a ₹1,000 crore loan to the Shri Kshethra Dharmasthala Rural Development Project