SBI takes loan of euros 100 mn to support SMEs

Mumbai: India's largest bank, the State Bank of India (SBI) Friday said it has signed a loan agreement of 100 million euros with European Investment Bank (EIB), the European Union's non-profit long-term lending institution.

"The loan will be utilised to support the development of private sector, in particular, small and medium-sized enterprises (SMEs), social and economic infrastructure as well as climate change mitigation and adaptation in India," SBI said in a statement.

The loan will be utilised for on-lending to private businesses in India and has been earmarked for financing projects across a broad range of sectors, including manufacturing as well as wholesale and retail trade and services.

"This is third tranche of a total loan out of total sanction of euros 200 million by EIB. A first tranche of euros 55 million and second tranche of euros 45 million was signed on 25th June, 2014 and 28th November, 2014 respectively," the Indian bank said.