Google launches $15M financial assistance program in India, partners with SIDBI to offer loans to businesses

Google launches $15M financial assistance program in India, partners with SIDBI to offer loans to businesses

Google said at its annual event for the South Asian market that it has created a major collaboration to assist give loans to micro and small firms in India. The corporation announced a $15 million financial support initiative with the Small Industries Development Bank of India, the country’s main regulatory authority for overall licensing and regulation of micro, small, and medium industry finance.

SIDBI would grant the loans, which will have “competitive interest rates” and ticket sizes ranging from 25 lakhs Indian rupees ($33,728) to one crore ($135,000). At the ceremony, Shalini Puchalapalli, director of Customer Solutions at Google India, stated that eligible businesses would use the loan to fund the acquisition of new equipment and machinery, as well as scale their production infrastructure and meet their working capital needs.

“With today’s announcement, we believe we can have a wide-ranging good social effect by collaborating with the larger ecosystem.” “We also hope that by doing so, more organizations would invest in public-private partnerships, therefore strengthening our economy,” she said.

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Google launches $15M financial assistance program in India, partners with SIDBI to offer loans to businesses

She noted that the initiative give priority to women-owned enterprises and those producing equipment for the country’s battle against the epidemic. At the virtual event, Sivasubramanian Ramann, chairperson and managing director of SIDBI, remarked, “Today, we feel delighted that SIDBl’s efforts in recovering the industry are backed by a solid relationship with Google.”

Google, which said last year that it would invest $10 billion in India over the next five to seven years, is the latest tech firm to consider assisting in the disbursement of loans to Indian businesses. In August, Facebook began a similar initiative in South Asia to assist small and medium-sized enterprises in obtaining financing. Facebook has entered into agreements with lending partners to provide small-ticket loans ranging from 500,000 Indian rupees ($6,720) to 50, 00,000 rupees ($67,200) at a predetermined interest rate of 17 percent to 20 percent each year.

SIDBI would grant the loans, which will have “competitive interest rates” and ticket sizes ranging from 25 lakhs Indian rupees ($33,728) to one crore ($135,000). “With today’s announcement, we believe we can have a wide-ranging good social effect by collaborating with the larger ecosystem.” “We also hope that by doing so, more organizations would invest in public-private partnerships, therefore strengthening our economy,” she said.

She noted that the initiative would give priority to women-owned enterprises and those producing equipment for the country’s battle against the epidemic. At the virtual event, Sivasubramanian Ramann, chairperson and managing director of SIDBI, remarked, “Today, we feel delighted that SIDBl’s efforts in recovering the industry are backed by a solid relationship with Google.” Google, which said last year that it would invest $10 billion in India over the next five to seven years, is the latest tech firm to consider assisting in the disbursement of loans to Indian businesses.

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