SIDBI-DFID collaboration:-

SIDBI has partnered with the Department for International Development (DFID), UK for its capacity building initiatives. DFID has committed grant support of £ 16.51 mn. in this regard.

In keeping with its mission, SIDBI is striving for overall growth and development of the Indian Micro Finance sector. This is being done by providing capacity building support with DFID support in the following directions :-

  • Scaling up MFIs and formalisation of NGOs to significantly expand their outreach and cater to the huge unmet demand for financial services by poor while ensuring sustainability and viability of their operations;
  • Initiation of micro finance by Formal Financial Institutions (FFIs) to leverage their extensive network and gain synergies from their ongoing relations with the sector through their other financial operations;
  • Strengthened capacity building of capacity builders / service providers with a view to providing a steady supply of qualified and trained manpower, consultants, rating agencies and other service providers to facilitate the growth of MFIs and FFIs;
  • Improved policy environment and appropriate regulatory framework for the sector
  • Action Research, Promoting Innovations, Support to Micro finance networks, Impact assessment etc.
  • Special package for expanding Micro finance services in underserved areas
SIDBI - IFAD collaboration:-
SIDBI has also collaborated with the International Fund for Agricultural Development (IFAD), Rome to upscale its operations in the underserved / underdeveloped regions / states as well as to increase its outreach by providing financial support to MFIs that focus on targeting the poor, more so, women. IFAD is providing soft loan support of SDR 16.35 mn. for providing financial support to MFIs in the underserved regions.

SIDBI- KfW collaboration
To bridge the wide gap between supply and demand and to increase access to microfinance products, SIDBI has partnered with the KfW for a line of credit of EUR 85 million. Additionally, a grant component of EUR 1.69 million has been earmarked for carrying forward the capacity building initiatives for the sector.