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Small Industries Development Bank of India (SIDBI) and Tata Capital Limited (TCL) signed an MoU for "Partnership for financing MSMEs," a release said on Tuesday.
According to SIDBI, the focus is on the growth and development of the MSME ecosystem by way of providing funding avenues in the field of machinery/equipment financing, working capital/CC/OD/business loans, and loans against property, etc. Further, risk sharing/ co-lending/ joint financing shall also be explored while extending credit facilities to MSMEs. The MoU was signed by Vivek Kumar Malhotra, Chief General Manager, SIDBI and Vivek Chopra, Chief Operating Officer, of Retail Finance, TCL in the presence of senior SIDBI and TCL officials. Since its formation in 1990, SIDBI acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities. SIDBI executes its mandate through Indirect Lending (based on multiplier effect/ larger reach in financing the MSME sector), Direct Lending (aims to fill the existing credit gaps in the MSME sector), Fund of Funds (boosts entrepreneurship culture by supporting emerging startups), Promotion and Development (promoting entrepreneurship and handholding budding entrepreneurs through credit-plus initiatives), Facilitator (playing a facilitator through roles like Nodal Agency for the MSME oriented schemes of the Government). (ANI)
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