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    Question

    Which of the following statement is not correct about

    SIDBI?
    A It provides Term Loans and Working Capital finance to MSMEs Correct Answer Incorrect Answer
    B It provides equity support for development of MSME sector Correct Answer Incorrect Answer
    C It refinances to Primary Lending Institutions (PLIs), comprising banks, State Level Financial Institutions, etc. Correct Answer Incorrect Answer
    D It provides equity support for weak Regional Rural Banks Correct Answer Incorrect Answer
    E It helps small entrepreneurs and businessmen for establish their business. Correct Answer Incorrect Answer

    Solution

    SIDBI provides direct, indirect and micro finance facilities. Direct Finance: In the form of Term Loan Assistance, Working Capital Assistance, Support against Receivables, Foreign Currency Loan, Scheme of Energy Saving for MSME sector, equity support etc. Indirect Finance: The Indirect assistance in the form of Refinance is provided to Primary Lending Institutions (PLIs), comprising banks, State Level Financial Institutions, etc. having a wide network of branches all over the country. The main objective of Refinance Scheme is to increase the resource position of PLIs which would ultimately facilitate the flow of credit to MSME sector. Micro Finance: SIDBI provides micro finance i.e. credit to small entrepreneurs and businessmen for establish their business.

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