Parliament of India was informed that the Reserve Bank had allocated Rs 10,000 crore to Sidbi to set up a venture capital (VC) fund to attract private capital for startups, which was first announced in the budget.
Small Industries Development Bank of India (Sidbi) on Tuesday July 14, 2015 said it has set aside Rs 2,000 crore for a fund-of-funds to pick-up equity in startups under the Rs 10,000-crore corpus announced in the Budget.
Startups and MSMEs can get soft loans at 10-12 per cent interest, which is lower than what banks offer.
The screening process has started, and a six-member venture capital investment committee which includes Mohandas Pai has been set up. The lending priority will be given to companies which are taking the 'Make in India' initiative ahead.
tags: sidbi, startups, loan, india, smile, make in india, Kshatrapati Shivaji