SIDBI and Federal Bank Join Hands to Boost MSME Financing The partnership aims to provide funding solutions for project finance, machinery and equipment purchases, working capital needs, and loans against property. Additionally, both institutions will explore joint financing opportunities to expand credit access for MSMEs.
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Small Industries Development Bank of India (SIDBI) and The Federal Bank Limited (FBL) have signed a Memorandum of Understanding (MoU) to enhance financial support for Micro, Small, and Medium Enterprises (MSMEs).
The partnership aims to provide funding solutions for project finance, machinery and equipment purchases, working capital needs, and loans against property. Additionally, both institutions will explore joint financing opportunities to expand credit access for MSMEs.
The MoU was signed by Prakash Kumar, Deputy Managing Director of SIDBI, and Harsh Dugar, Executive Director of Federal Bank, in the presence of senior officials from both organizations. This collaboration aligns with SIDBI's mission to strengthen the MSME ecosystem by bridging credit gaps and offering tailored financial solutions.
SIDBI, established in 1990, serves as the principal financial institution for MSME promotion and development in India. It provides direct and indirect lending, supports emerging startups through its Fund of Funds initiative, and acts as a nodal agency for MSME-oriented government schemes.
The partnership with Federal Bank is expected to boost MSME financing, fostering BIZ Experiencesship and business growth across the country.
