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FICCI and IDBI on Friday signed an MoU for easy access to organised finance facility at competitive interest rates for micro, small and medium enterprise (MSME).
The FICCI-CMSME and IDBI partnership will grant best pricing offered at the relevant time by IDBI including concession of 100 bps and charging of processing fee as low as 0.10 per cent to the proposals referred by FICCI-CMSME, the industry chamber said in a statement.
A Didar Singh, Secretary General, FICCI and FICCI-CMSME said, “Timely availability of credit at the right cost is the key expectation of industry from their banks. While large corporate manage to get the attention of bankers, often the smaller companies have a disadvantage in sourcing credit at right cost and right time.”
According to study by IFC in November 2012 titled “MSME Finance in India”, despite the increase in financing to MSMEs in recent years, there is still a considerable institutional formal finance gap of ₹20.9 trillion.
B. K. Batra, Deputy Managing Director, IDBI, said “This MOU with FICCI would be a win-win situation for both the organisations for meeting the credit requirements of the MSME sector in a timely and cost effective manner. The MoU would help IDBI Bank in further increasing its reach to the MSME Sector.”
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