Small Industries Development Bank of India (SIDBI) has signed a Memorandum of Understanding (MoU) with Tata Capital Limited (TCL) to enhance financing opportunities for Micro, Small, and Medium Enterprises (MSMEs). The partnership aims to provide funding solutions in machinery and equipment financing, working capital, overdraft facilities, business loans, and loans against property.
Additionally, both organizations will explore risk-sharing mechanisms, co-lending models, and joint financing arrangements to ensure more comprehensive credit access for MSMEs. The MoU was signed by Shri Vivek Kumar Malhotra, Chief General Manager of SIDBI, and Shri Vivek Chopra, Chief Operating Officer of Retail Finance at Tata Capital, in the presence of senior officials from both institutions.
About SIDBI
Established in 1990, SIDBI serves as the principal financial institution for promoting, financing, and developing the MSME sector. The institution plays a crucial role in indirect lending (expanding financing reach for MSMEs), direct lending (addressing credit gaps), fund-of-funds initiatives (supporting emerging startups), and various promotional and developmental activities. Additionally, SIDBI acts as a facilitator for government-led MSME financing schemes.
This collaboration with Tata Capital is expected to bolster financial support for MSMEs, helping them expand operations, enhance productivity, and contribute to India’s economic growth.
