SIDBI & MCCIA sign MoU to facilitate loans upto Rs 50 lakh to MSMEs

Pune: To make deeper inroads into MSME financing, the Small Industries and Development Bank of India (SIDBI) signed a memorandum of understanding (MoU) with the Mahratta Chambers of Commerce, Industries and Agriculture (MCCIA) to facilitate loans of up to Rs 50 lakh to member MSMEs on a preferential basis.

The MoU will target Micro, Small and Medium Enterprises (MSMEs) in the Pune region that are members of the MCCIA. The chambers said it has membership of about 1,600 MSMEs from Pune and its adjoining region.

MSMEs typically struggle to get loans from financial institutions, despite being one of the biggest employment generators in the country. According to SIDBI’s annual report, only about 7.3% of the over 5.1 crore MSMEs in the country avail loans.

SIDBI said there will be no turnover restrictions on the MSMEs for these loans, but only those enterprises will qualify for loans, which have posted profit in the last two years continuously and have been in existence for at least three years.

Source: Times of India