Patna, September 28, 2023 – The Small Industries Development Bank of India (SIDBI), in a concerted effort to bolster the economic and financial sustainability of micro, small, and medium enterprises (MSMEs), is on the verge of launching an innovative app-based ‘invoice financing’ loans platform known as ‘GST Sahay.’ This strategic initiative aims to alleviate the challenges faced by MSMEs in securing working capital, announced Rahul Priyadarshi, Chief General Manager (CGM) of SIDBI, during a customer outreach program held in Patna.
Recognizing the pivotal role played by MSMEs in India’s economic growth and job creation, Priyadarshi emphasized the significance of addressing the working capital credit crunch that has been a persistent concern for these enterprises. He stated, “Although the government has undertaken several measures to support MSMEs in recent years, the shortage of working capital credit remains a major issue. SIDBI is now in the process of launching an app-based ‘invoice financing’ loans platform to address this challenge.”
The forthcoming ‘GST Sahay’ platform is envisioned as an invoice-financing marketplace where MSMEs can leverage their unpaid invoices to secure prompt working capital loans. By doing so, the platform is set to mitigate the issues related to delayed payments and the resulting cash flow discrepancies that MSMEs frequently encounter.
Commenting on the industrial growth potential in Bihar, Priyadarshi noted, “While it is evident that industrial growth is taking root in the state, SIDBI aspires to propel this region to greater heights. Bihar holds significant potential in agro-processing, medical, and agri-tourism sectors, and we are committed to nurturing such businesses. SIDBI aims to further augment its loan assistance within the state.”
The CGM highlighted the commendable growth in SIDBI’s lending activities in the Patna region, reporting a remarkable 35% increase from March 2023 to the present date. Currently, the loan book of SIDBI’s Patna region stands at Rs 232 crore, a figure that is poised to expand further. Priyadarshi affirmed, “The acceleration of growth is in full swing in this region.”
He underscored the principles of transparency and trust that govern SIDBI’s business operations, highlighting the institution’s dedication to fostering strong relationships with its valued customers. Anubha Prasad, Regional Head of SIDBI Patna, shared insights on the bank’s commitment to supporting the development of Bihar and Jharkhand through its credit-plus approach. She expressed the bank’s goal of creating a lasting impact on enterprise development at the grassroots level, contributing to employment generation and entrepreneur empowerment.
Prasad also revealed that SIDBI has appraised 17 proposals, amounting to approximately Rs 196 crore, under the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) for Bihar Industrial Area Development Authority (BIADA) clusters in the state. This demonstrates SIDBI’s active involvement in fostering cluster-based growth and development.
Highlighting the bank’s diverse portfolio, Prasad added, “SIDBI is also extending financial support and guidance for green projects within the MSME sector, aligning with the nation’s commitment to reducing Greenhouse Gas (GHG) emissions.”
The launch of ‘GST Sahay’ underscores SIDBI’s unwavering commitment to providing innovative financial solutions that address the specific needs of MSMEs. By facilitating easier access to working capital, SIDBI aims to empower MSMEs, promote business growth, and contribute to the overall economic development of the region. This initiative exemplifies SIDBI’s proactive approach in supporting the evolving financial landscape for India’s small and medium enterprises.
