Google launches $ 15 million financial aid program in India, partners with SIDBI to provide business loans – TechCrunch

Google has formed a key partnership to help provide loans to micro and small businesses in India, the company said at its annual event for the South Asian market.

The company said it had partnered with the Small Industries Development Bank of India, the country’s highest regulatory body for the licensing and global regulation of micro, small and medium-sized enterprise finance, to launch a $ 15 million financial assistance program to provide timely microloans to businesses.

The loans, which will be disbursed by SIDBI, will be offered at “competitive interest rates” and its note size will range from Indian rupee 25 lakh ($ 33,728) to 1 crore ($ 135,000). Eligible companies will use the loan to finance the purchase of new equipment and machinery, expand their production infrastructure and meet their working capital needs, said Shalini Puchalapalli, director of customer solutions at Google India, at the event. .

“With today’s announcement, we believe that by working with a larger ecosystem, we can have a far-reaching positive social impact. We also hope that this will encourage more organizations to invest in public-private partnerships and further strengthen our economy, ”she said.

The program will prioritize women-owned businesses and those engaged in the production of equipment for the country’s fight against the pandemic, she added.

“Today, we are proud that SIDBl’s efforts to revive the industry are supported by a strong collaboration with Google,” said Sivasubramanian Ramann, President and CEO of SIDBI, at the virtual event.

Google, which last year pledged to invest $ 10 billion in India over five to seven years, is the latest tech giant to consider helping provide business loans in India.

In August, Facebook launched a similar program to help small and medium-sized businesses obtain loans in the South Asian market. Facebook has forged links with lending partners to provide small loans – ranging from 500,000 Indian rupees ($ 6,720) to 50,000,000 ($ 67,200) – at a predefined interest rate of 17% to 20% per year.

Leave a Comment