New Delhi, Feb 29 (UNI) In order to give a fillip to the micro, small and medium enterprises, Finance Minister P Chidambaram today proposed to create a risk capital fund in the Small Industries and Development Bank of India (SIDBI).
As on January 31, 2008, the Credit Guarantee Trust with SIDBI had extended guarantees to 89,129 units for an amount of Rs 2,479 crore.
SIDBI will reduce the guarantee fee from 1. 5 per cent to one per cent and the annual service fee from 0.75 per cent to 0.5 per cent for loans up to Rs 5 lakh.
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