Vedanta Aluminium, India’s largest aluminium producer, has signed a Memorandum of Understanding (MoU) with the Central Bank of India to offer collateral-free customer financing through its unit, Balco.
A press release from the company said the initiative will enable original equipment manufacturers (OEMs), including micro, small, and medium Eenterprises (MSMEs), to get loans with minimal documentation and at highly competitive interest rates. This could provide a significant boost to India’s downstream metal industry as MSMEs make up 60 per cent of its customers.
The finance initiative will be integrated directly into Vedanta’s Metal Bazaar, the company’s e-superstore for aluminium products, to ensure quick disbursement, digital coordination, automated lien marking, and real-time invoice tracking.
4 banks on platform
This will likely strengthen Vedanta Aluminium’s existing financing ecosystem enabled through Vedanta Metal Bazaar, which already connects customers with leading banks and NBFCs.
Currently, over 100 customers are availing financing options from four partner banks via the platform. The addition of the Central Bank of India, will further “democratise access to working capital” across the country, the release said.
The MoU outlines a comprehensive customer financing framework allowing OEMs and MSMEs to avail loans without or with minimal collateral. Financing limits range from ₹10 lakh to ₹10 crore per customer, with the potential for higher limits based on business turnover, customer vintage, and BALCO’s recommendation.
Customers will benefit from one of the lowest interest rates in the industry, with a standard repayment period of 90 days and a 15-day grace window. The programme’s integration with Vedanta Metal Bazaar ensures a fully digital, streamlined experience powered by API-based services.
Rajiv Kumar, CEO of Vedanta Aluminium, said, “By enabling greater financial liquidity, we are not only empowering our customers to scale efficiently but also accelerating the development of a robust downstream sector.”
Vedanta Aluminium, a unit of Vedanta Limited, is India’s largest producer of aluminium. It produced 2.42 million tonnes of aluminium in 2024-25, more than half of the country’s aluminium output.