The Small Industries Development Bank of India will shortly launch a Rs 500 crore (Rs 5 billion) venture capital fund for small companies.
"Sidbi has identified venture capital as a thrust area for the next five years to support innovative and high-risk SME ventures," Sidbi Venture Capital Fund CEO, Ajay Kapur said at a PHDCCI seminar in Mumbai on Monday.
He said the Rs 500 crore fund would address the perennial problem of availability of timely and adequate financial support to SMEs.
Apart from setting up a VC fund, Sidbi has also drawn up plans to fund companies at the state-level and tap international sources for cheaper funds.
Sidbi Credit Guarantee Trust Fund for Small Industries, which has a corpus of Rs 2,500 crore, is also geared up to offer collateral free loans worth Rs 1,200 crore to SMEs in the next three years, CGTSI CEO, N K Maini, said.
CGTSI, which would offer loans through a single window facility, targets to provide a maximum Rs 25 lakh to small companies.
Sidbi's credit guarantee arm has so far given loans worth Rs 294 crore to 17,625 units.
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