Codissia inks pact with SIDBI for credit access

An agreement aimed at facilitating easy access to credit for the smaller units in the MSME segment has been inked by Codissia (Coimbatore District Small Industries Association), the apex association of small industries, and the Small Industries Development Bank of India (SIDBI).

“This is an exclusive financial arrangement for the MSMEs and Codissia members in particular. It is a mutually agreed loan delivery mechanism,” EK Ponnuswamy, President, Codissia, said.

As per the agreement, all MSME members of Codissia can apply to SIDBI through the association. Promoters’ contribution of 20 per cent is required. Term loans can be for purchase of fixed assets and for tenure of up to 84 months, including moratorium of 6-18 months. The maximum limit is Rs. 75 lakh, based on SIDBI’s eligibility criteria, the Codissia president explained.

 Source: Business Line