SIDBI will soon launch a portal for MSMEs to get their invoices financed.
Key Highlights
- A platform, ‘GST Sahay’ to be launched by the institution for MSMEs.
- The platform would be an app-based marketplace for invoice financing.
- SIDBI aims to capture a 25% share of the total MSME lending segment.
The Small Industries Development Bank of India (SIDBI) will soon launch an app-based platform ‘GST Sahay’ to facilitate invoice financing for MSMEs.
Speaking at a customer outreach programme, Rahul Priyadarshi, the Chief General Manager of the SIDBI mentioned about the upcoming platform. He said, “Although several measures for the MSMEs have been taken in the past few years by the government, the crunch in working capital credit is one of the major issues for them. Now, SIDBI is in the process of launching an app-based invoice financing loans platform for them.”
Further elaborating on the GST Sahay platform, he mentioned “The new invoice platform-GST Sahay will reduce the problem of delayed payments and consequential cash flow mismatches for the MSMEs. The GST Sahay will be an invoice-financing marketplace where MSMEs can use their unpaid invoices to get quick working capital loans.”
SIDBI’s earlier initiatives for MSMEs
The SIDBI had been set up in 1990 to provide easier finance to the MSME sector and ensure co-ordination between institutions working for the same cause.
Staying true to its objective, the SIBDI has been proactive in the empowerment of the MSMEs in the country with the financial institution recently signing an MoU with Tata Power to finance MSMEs working in the solar sector.
The institution further wants to increase its share in the overall MSME lending segment to 25% by raising equity capital.
