The Small Industries Development Bank of India (SIDBI) has signed a Memorandum of Understanding (MoU) with The Federal Bank Limited (FBL) to enhance MSME financing and support the growth of the Micro, Small, and Medium Enterprise (MSME) sector.
Key Highlights of the MoU:
- Objective: Strengthening MSME financing to promote growth and development in the sector.
- Scope: Financial assistance for project finance, machinery/equipment finance, working capital (including letter of credit and bank guarantee), and loans against property.
- Joint Financing: Both institutions will explore co-lending opportunities to improve credit access for MSMEs.
- Signatories: The MoU was signed by Shri Prakash Kumar, Deputy Managing Director of SIDBI, and Shri Harsh Dugar, Executive Director of Federal Bank, in the presence of senior officials from both organizations.
About SIDBI
Established in 1990, SIDBI serves as the Principal Financial Institution for the promotion, financing, and development of MSMEs in India. It supports the sector through:
- Indirect Lending – Expanding reach via financial institutions.
- Direct Lending – Addressing credit gaps in MSMEs.
- Fund of Funds – Encouraging startups and entrepreneurship.
- Promotion & Development – Offering mentorship and support to emerging entrepreneurs.
- Facilitator Role – Acting as a nodal agency for MSME-oriented government schemes.
This strategic collaboration is expected to streamline credit access for MSMEs, strengthen entrepreneurship, and boost economic growth in the sector.
TOPICS:
Federal Bank