The Small Industries Development Bank of India (SIDBI) has signed a Memorandum of Understanding (MoU) with Tata Capital Limited (TCL) to improve financing options for Micro, Small, and Medium Enterprises (MSMEs). This agreement focuses on supporting the growth of MSMEs by providing various funding opportunities, including loans for machinery and equipment, working capital loans, and loans against property. The collaboration will also investigate co-lending, risk-sharing, and joint financing approaches to facilitate better credit access for MSMEs.
Key Highlights
Objective of the MoU
- Strengthen financing avenues for MSMEs through SIDBI and Tata Capital Limited (TCL).
Funding Areas Covered
- Machinery/equipment financing
- Working capital loans (CC/OD/business loans)
- Loans against property
- Risk Sharing and Co-Lending: The MoU will explore risk-sharing mechanisms, joint financing, and co-lending models to improve MSME credit access.
Signing Ceremony
- Signed by Vivek Kumar Malhotra, Chief General Manager, SIDBI
- Signed by Vivek Chopra, Chief Operating Officer, Retail Finance, TCL
- Attended by senior officials from SIDBI and TCL
SIDBI’s Role in MSME Development:
- Indirect Lending: Expands reach in MSME financing through partner institutions.
- Direct Lending: Addresses existing credit gaps in the MSME sector.
- Fund of Funds: Supports startups to boost entrepreneurial culture.
- Promotion & Development: Handholding and credit-plus initiatives for MSMEs.
- Facilitator: Acts as a nodal agency for government MSME schemes.
