What is the BDS Fund?
The Business Development Services (BDS) Fund will provide matching performance grants to BDS Providers serving the MSME sector, rather than offering direct support to the MSMEs. The matching grants will be provided to Participating Banks and other eligible banks to assist them in developing and expanding efficient lending to MSMEs. Furthermore, the BDS Matching Grants will be provided to:- i. Eligible MSMEs including:- a) Clients of banks to improve the capacity to present credible loan application packages; and b) To make productive use of loans and improve their ability to service debts. ii. Eligible business development service providers, including training providers to implement a range of services to support SME borrowing capabilities and post-borrowing performance. ii. The BDS Fund will again assist eligible financial institutions and intermediaries to develop and make available additional financial instruments to MSMEs.
