Customers at the meet of Sidbi bank. Picture by Bhola Prasad

Jamshedpur, June 29: Small-scale entrepreneurs facing financial crunch in absence of institutional credit have news to cheer.

The Small Industries Development Bank of India (Sidbi) has decided to provide credit to micro business in Jharkhand. Loan disbursement up to Rs 50,000 would be done at the doorstep of small businessmen through private micro finance institutions.

A private company that has already entered into an agreement with Sidbi and would start functioning from next month is SKS Hyderabad.

General manager of Sidbi (eastern zone) S.K. Singhwan, who was in the city for a customers’ meet, said for the first time the company has decided to enter into micro lending business. The decision was taken in view of the huge number of potential creditors in places like Jamshedpur, Ranchi and Dhanbad. There are a large number of small businessmen in these areas who require loans not more than Rs 20,000, he said.

Loans will be provided at the doorstep of customers to ensure the lending process is hassle-free.

“The staff will go to the creditor, study his business and needs and offer him loans without any collateral. The documentation will be minimum so that these businessman do not find it difficult to complete the formalities,” said Singhwan.