Globally the spread of COVID-19 pandemic is becoming a cause of concern for the health of millions of individuals. The world has not seen an outbreak of this scale in decades. Health professionals worldwide are working hard to treat the infected and find a cure for the virus. Fighting COVID-19 in the current scenario means there is a massive requirement for tools such as PPE, Sanitizers, Ventilators, drugs, etc. and every country is investing heavily in producing these products at scale.
India's Fight against COVID-19
We are a nation of 1.3 billion people. For us to be effective in our fight against COVID-19, we need to make significant investments to produce PPE, drugs, ventilators, etc. in large quantities. The effort requires investments in people, new technologies, and machines. It is hard for entrepreneurs to make new investments at these difficult times when they need help.
SIDBI, India's Development Financial Institution, has created a program to help entrepreneurs and small businesses join India's fight against COVID-19. SAFE (SIDBI Assistance to Facilitate Emergency Response) Loans program is for MSMEs looking to make new investments to provide COVID-19 related equipment or services. Under the SAFE loans program, MSMEs can avail loans worth 50 Lacs at 5% interest without collateral. SIDBI also promises to respond to all SAFE loan applications in 48 hours.
All loans under the SAFE program will have a tenure of 60-months. SIDBI is also providing an 18-month moratorium on all SAFE loan EMI payments.