| Financier | Commitments |
|---|---|
| Borrower/Recipient | 11.40 |
| UK: British Department for International Development (DFID) | 37.00 |
| SWITZERLAND, Govt. of (Except for FOFEA) | 5.00 |
| International Bank for Reconstruction and Development | 120.00 |
SME Financing & Development
Abstract*
The objective of the Small and Medium Enterprise (SME) Financing and Development Project is to improve SME access to finance (including term finance), and business development services, thereby fostering SME growth, competitiveness, and employment creation, key to achieving economic growth and poverty reduction. The project has three main components: 1. Credit Facility (CF) - financed through the Bank's US$lOO million, counterpart funds of US$lO.O... Show More
Development Objective
The objective of this project is to improve SME access to finance (particularly longer term financing) and business development services, thereby fostering SME growth, competitiveness and employment creation, which are key to achieving GoI's overall objectives of economic growth and poverty reduction. The project is designed to achieve its objective through a multi-pronged approach that will that will address key bottlenecks to SME financing and development in India, by focusing on: (a) creating a more enabling policy, regulatory and institutional framework for SME financing by banks (the primary target group for this project); (b) helping banks gain better access to longer term financing for lending to the SME sector, thereby facilitating capital formation and technology up-grading; (c) mitigating banks' risks related to SME lending and reducing transactions costs of such lending while, at the same time, ensuring that banks enhance the quality of their SME loan portfolios; and (d) strengthening business development services and market linkage programs for SMEs (the secondary target group), thereby helping SMEs to improve profitability and competitiveness, and become more creditworthy.
Key Details
Project Details
P086518
Closed
Niraj Verma
N/A
March 10, 2004
(as of board presentation)
November 30, 2004
April 29, 2005
US$ 173.40 million
N/A
2005
US$ 162.00 million
F
Not Applicable
June 30, 2013
BANK APPROVED
January 15, 2013
Finances
Financing Plan (US$ Millions)
Total Project Financing (US$ Millions)
| Product Line | IBRD/IDA |
|---|---|
| IBRD Commitment | 120.00 |
| IDA Commitment | N/A |
| IBRD + IDA Commitment | 120.00 |
| Lending Instrument | |
|---|---|
| Grant Amount | 42.00 |
| Total Project Cost** | 173.40 |
Summary Status of World Bank Financing (US$ Millions) as of July 31, 2025
No data available.
| Period | Financier | Transaction Type | Amount (US$) |
|---|---|---|---|
| Nov 30, 2004 | IBRD-72630 | Loan Commitment | 120,000,000.00 |
| Apr 30, 2009 | IBRD-76940 | Loan Commitment | 400,000,000.00 |
| Jun 15, 2024 | IBRD-76940 | Int Charges | 22,468.20 |
| Jun 15, 2024 | IBRD-76940 | Loan Repay | 113,000,000.00 |
| Jun 15, 2024 | IBRD-76940 | Int Charges | 3,500,526.50 |
| Dec 15, 2023 | IBRD-76940 | Int Charges | 60,093.51 |
| Dec 15, 2023 | IBRD-76940 | Int Charges | 3,287,987.00 |
| Jun 15, 2023 | IBRD-76940 | Int Charges | 144,573.60 |
| Jun 15, 2023 | IBRD-76940 | Int Charges | 2,839,833.00 |
| Dec 15, 2022 | IBRD-76940 | Int Charges | 1,866,266.20 |
| Dec 15, 2021 | IBRD-76940 | Int Charges | 324,440.00 |
| Dec 6, 2021 | IBRD-76940 | Loan Repay | 14,000,000.00 |
| Dec 6, 2021 | IBRD-76940 | Loan Repay | 7,000,000.00 |
| Jun 15, 2022 | IBRD-76940 | Int Charges | 359,905.00 |
| Jun 15, 2021 | IBRD-76940 | Int Charges | 372,594.44 |
| Dec 15, 2020 | IBRD-76940 | Int Charges | 483,628.30 |
| Jun 15, 2020 | IBRD-76940 | Int Charges | 1,484,943.40 |
| Dec 15, 2019 | IBRD-76940 | Int Charges | 1,784,656.60 |
| Nov 15, 2019 | IBRD-72630 | Int Charges | 87,093.33 |
| Nov 15, 2019 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Jun 15, 2019 | IBRD-76940 | Int Charges | 4,305,968.50 |
| Jun 15, 2019 | IBRD-76940 | Loan Repay | 133,000,000.00 |
| May 15, 2019 | IBRD-72630 | Int Charges | 187,636.67 |
| May 15, 2019 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Dec 15, 2018 | IBRD-76940 | Int Charges | 3,759,582.50 |
| May 15, 2018 | IBRD-72630 | Int Charges | 225,646.66 |
| May 15, 2018 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Nov 15, 2018 | IBRD-72630 | Int Charges | 254,840.00 |
| Nov 15, 2018 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Jun 15, 2018 | IBRD-76940 | Int Charges | 2,726,663.20 |
| Dec 15, 2017 | IBRD-76940 | Int Charges | 2,266,607.50 |
| Nov 15, 2017 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Nov 15, 2017 | IBRD-72630 | Int Charges | 259,133.34 |
| Jun 15, 2017 | IBRD-76940 | Int Charges | 2,038,248.40 |
| May 15, 2017 | IBRD-72630 | Int Charges | 273,310.00 |
| May 15, 2017 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Nov 15, 2016 | IBRD-72630 | Int Charges | 249,013.33 |
| Nov 15, 2016 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Dec 15, 2016 | IBRD-76940 | Int Charges | 1,506,547.50 |
| May 15, 2016 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Jun 15, 2016 | IBRD-76940 | Int Charges | 1,221,525.00 |
| May 15, 2016 | IBRD-72630 | Int Charges | 206,266.66 |
| Dec 15, 2015 | IBRD-76940 | Int Charges | 773,632.50 |
| Nov 15, 2015 | IBRD-72630 | Int Charges | 182,160.00 |
| Nov 15, 2015 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| May 15, 2015 | IBRD-72630 | Int Charges | 174,966.66 |
| May 15, 2015 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Jun 15, 2015 | IBRD-76940 | Int Charges | 593,926.70 |
| Jun 15, 2014 | IBRD-76940 | Int Charges | 829,111.10 |
| Jun 15, 2014 | IBRD-76940 | Loan Repay | 133,000,000.00 |
| Dec 15, 2014 | IBRD-76940 | Int Charges | 529,327.50 |
| May 15, 2014 | IBRD-72630 | Int Charges | 220,820.00 |
| May 15, 2014 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Nov 15, 2013 | IBRD-72630 | Int Charges | 271,093.34 |
| Nov 15, 2013 | IBRD-72630 | Loan Repay | 6,000,000.00 |
| Sep 26, 2013 | IBRD-76940 | Loan Disb | 298,707.10 |
| Dec 15, 2013 | IBRD-76940 | Int Charges | 953,855.90 |
| Dec 15, 2013 | IBRD-76940 | Int Charges | 590.60 |
| Nov 15, 2014 | IBRD-72630 | Int Charges | 192,280.00 |
| Nov 15, 2014 | IBRD-72630 | Loan Repay | 6,000,000.00 |
Ratings
IMPLEMENTATION RATINGS
| Name | Review | Date |
|---|---|---|
| Procurement | Satisfactory | 2013-06-25 |
| Counterpart Funding | Moderately Satisfactory | 2013-06-25 |
| Progress towards achievement of PDO | Satisfactory | 2013-06-25 |
| Financial Management | Satisfactory | 2013-06-25 |
| Monitoring and Evaluation | Satisfactory | 2013-06-25 |
| Overall Implementation Progress (IP) | Moderately Satisfactory | 2013-06-25 |
| Project Management | Satisfactory | 2013-06-25 |
COMPLETION RATINGS
| INDICATOR | IMPLEMENTATION COMPLETION & RESULTS REPORT: 12-29-2013 |
|---|---|
| Outcomes | Substantial |
| Risk to Development Outcome | Negligible |
| Bank Performance | Substantial |
| Borrower Performance | Substantial |
| Government Performance | Substantial |
| Implementing Agency | Substantial |
INDEPENDENT EVALUATION RATINGS
| INDICATOR | ICR REVIEW: 02-18-2015 | PROJECT PERFORMANCE ASSESSMENT REPORT: |
|---|---|---|
| Outcome Rating | Satisfactory | N/a |
| Risk To Development Outcome | Negligible To Low | N/a |
| Bank Performance | Satisfactory | N/a |
| Borrower Performance | Satisfactory | N/a |
| Government Performance | Satisfactory | N/a |
| Implementing Agency | Satisfactory | N/a |
| Icr Quality | Satisfactory | N/a |
| M&e Quality | Substantial | N/a |
Results Framework
PROJECT DEVELOPMENT OBJECTIVE INDICATORS
| INDICATOR | BASELINE | CURRENT | TARGET |
|---|
30% increase in lending (including term lending) to SMEs by PFIs Value 0.00 123.00 30.00 Date March 31, 2008 March 31, 2013 June 30, 2012 Comment (a) 15,087 (b) 19,276 SIDBI(b) 8829 BOM; 485 (AU) (a) SIDBI: 33,666 (+123%) Bank of Maharashtra (BOM):NAAU: NA(b) SIDBI: 57,642 (+199%)BoM: 11,289 (+27%)AU: 3,704 (+563%) Controlled net NPL ratio on the SME loan portfolios of all PFIs Value 0.25 0.34 3.00 Date March 31, 2008 March 31, 2013 June 30, 2013 Comment SIDBI: 0.25%BoM: 1.32% AU: NIL SIDBI: 0.53%BoM: 3.61%AU: 0.20%Well below maximum NPL ratio target for end project in weighted average terms Improved profitability of SME business in all PFIs as measured by RoA of 1% or more Value 1.01 1.39 1.00 Date March 31, 2008 March 31, 2013 June 30, 2013 Comment SIDBI: 1.39%BoM: Not available; SME lending is one of many areas serviced by BoM, which hence has difficulty providing thisdata.AU: 2.48% Scale-up of benefiting SME#s operations (as measured by a 15% increase in turnover) Value 0.00 31.00 15.00 Date April 1, 2008 March 31, 2013 June 30, 2013 Comment 589; Baseline (FY08) and end of project target (FY11) to be established through a baseline and follow-up surveys of a sample of SMEs 774; (=31% increase)Baseline (FY08) and end of project target (FY13) to be established through a baseline and follow-up surveysofa sample of SMEs
INTERMEDIATE RESULTS INDICATORS
| INDICATOR | BASELINE | CURRENT | TARGET |
|---|
Percentage Growth in the number of SMEs that receive funds Value 0.00 762.00 100.00 Date March 31, 2008 March 31, 2013 June 30, 2013 Comment Over 10,000 new SME loans were supported under AF; estimated 8,000 SMEs covered. Relative to 927 in parent project Percentage of the Credit Facility to PFIs disbursed to eligible SMEs Value 0.00 97.69 100.00 Date March 31, 2008 March 31, 2013 June 30, 2013 Comment Percentage of the RSF gurantees issued Value 0.00 14.00 100.00 Date June 30, 2009 March 31, 2013 June 30, 2012 Comment Volume of Bank Support: Lines of Credit - SME Value 12000000.00 510000000.00 520000000.00 Date March 31, 2008 March 31, 2013 June 30, 2013 Comment Data in USD covers initial financing original parent project and additional financing (P086518+P102767). Outstanding SME Loan Portfolio Value 5.00 10.10 8.00 Date March 31, 2008 March 31, 2013 June 30, 2013 Comment bn dollars SIDBI's overall SME portfolio bn dollarsSIDBI: 10.1BoM: 1.9AU: 0.63 bn dollars No of active loan accounts -SME Value 5548.00 153000.00 0.00 Date March 31, 2008 March 31, 2012 June 30, 2012 Comment Estimated measure of SIDBI's number of SME clientele SIDBI: 10,492BoM: 139,081AU: 3,883 No target available Percentage of project-supported institutions that are reporting on this indicator Value 0.00 3.00 3.00 Date March 31, 2008 March 31, 2013 June 30, 2013 Comment SIDBI's overall SME portfolio No target available