Small Industries Development Bank of India (SIDBI) today signed a Memorandum of Understanding (MoU) with Vijaya Bank for providing concessional finance to Micro and Small Enterprises (MSEs). The theme of the MoU is “MSME Credit at Corporate Rates”.
The MoU is aimed at promoting and strengthening the Units in the micro and small industry segment through concessional funding i.e. at MCLR of Vijaya Bank under refinance from SIDBI. It is also envisaged that joint financing / co-financing of MSME for capital expenditure under "SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises" (SMILE) Scheme of SIDBI at concessional rate of 9.60%, along with Working Capital from Vijaya Bank would be pursued proactively. The resources and expertise of SIDBI in MSME financing & processes and outreach of Vijaya Bank are proposed to be leveraged. This initiative of SIDBI and Vijaya Bank will go a long way in creating a conducive ecosystem for MSEs desirous of accessing concessional / composite funding.
Speaking on the occasion, Dr. Kishore Sansi, the MD& CEO of Vijaya Bank said that the Bank has taken several steps in the last year to proactively finance new entrepreneurs under Government of India’s new initiatives for MSMEs such as ‘Make in India’ and ‘Stand Up India’. This year alone, nearly 500 new entrepreneurs are fiananced by Vijaya Bank to set up green field projects under ‘Stand Up India’ scheme. Further, the Bank has financed in excess of `1250 crore this year alone under ‘Prime Minister’s Mudra Yojna (PMMY) scheme’
Shri Manoj Mittal, Deputy Managing Director, SIDBI, while speaking on the occasion outlined the various initiatives taken in the recent past by SIDBI for enhancing credit flow to MSE Sector viz., Stand Up India Portal for providing a online market place for accessing finance and handholding support to SC/ST and Women entrepreneurs for setting up Greenfield projects with loan requirement from `10 lakh to `100 lakh, provide quasi-equity /equity to startup ventures under Fund of Fund operations, setting up of National Credit Guarantee Trustee Company (NCGTC) for guaranteeing loans in sectors such as skill development, education, MUDRA, factoring, etc. thereby boosting institutional credit flow to these sectors.
