Game, Sidbi Join Hand To Design, Implement NBFC Growth Accelerator Program

Global Alliance for Mass Entrepreneurship (Game) has received in-principal approval from Sidbi for designing and structuring a sustainable and scalable NBFC growth accelerator program (NGAP).

Reportedly, this program which will be the first of it’s kind in India.

In the first phase, the program involves the design of a comprehensive, actionable, granular report with the programme structure, piloting strategy, and implementation plan for NGAP by GAME, the company said in a statement.

The report will also include criteria for the evaluation and selection of around 20 non-banking financial companies (NBFCs) that are small in size but focused on the MSE segment to be part of the pilot cohort.  

The goal of NGAP is to have a structured model on the lines of global accelerators which will help small NBFCs that cater to MSEs in tier III and IV cities or to the urban MSEs.

The company added that this will serve as the lowest rung of suppliers in a long value chain, in order to build their capability and make them eligible for institutional funding from banks or larger NBFCs. 

Sivasubramanian Raman, CMD, Sidbi said, “Sidbi as a development institution, is endeavouring to build capacities of smaller NBFCs, in different geographies and sectors, to enable them to receive bank credit at reasonable rates. This will enhance the flow of assistance to the MSME sector."

Raman added that the NGAP should help address shortcomings in the overall functioning of the NBFC and thus give greater confidence to banks to lend to smaller unrated NBFCs.

Ravi Venkatesan, Founder, Game explained, "The ultimate goal of the NGAP framework is to enable a larger set of NBFCs to get access to institutional funding at a reasonable rate, so the benefit can be passed on to the MSMEs."

Venkatesan added that NBFCs are ideally suited to service the MSE segment and by creating a model of capability building, NGAP will be a sustainable model benefitting the funding institutions, NBFCs and MSMEs.