Union Bank of India & Small Industries Development Bank of India (SIDBI) signed Memorandum of Understanding (MoU) for Co-Financing arrangement for MSMEs. Shri Lal Singh – Chief General Manager, Union Bank of India and Shri Vivek Kumar Malhotra – Chief General Manager, SIDBI signed the MOU on 1st June 2022 for this new initiative.
As per this the MoU, Union Bank of India would consider Joint financing/ Co-Financing with SIDBI for MSME Projects/Units. This initiative will help the Bank to increase their Customer base, while helping the MSMEs to meet their funding requirements. The key highlights of the arrangement include joint identification of viable projects, term loan funding and working capital financing to MSMEs.
As per the bank’s disclosure, initially the arrangement would be at specific centers and once the arrangement stabilizes at these centers, more locations would be covered.
As per disclosure of Union Bank of India on their website, speaking on the occasion Shri Lal Singh-CGM (MSME), Union Bank of India, said “MSME is one of the key sectors of our Indian Economy contributing to GDP, Exports, Manufacturing Output, Employment, Women Empowerment etc.. MSME is one of the focused areas of the Bank and bank aims to become Bank of 1st choice for MSMEs. This tie-up with SIDBI aids in realizing the Bank’s vision to have increased credit flow to the MSME sector and extend operational convenience to the MSME clientele. Under partnership, Union Bank of India through its Pan India branch network can provide general Banking products like Current Accounts, Savings Accounts, Working Capital facilities and other related services to the MSME Customers of SIDBI. Also, speaking on the tie-up arrangement, Shri Vivek Kumar Malhotra, CGM, SIDBI reiterated SIDBI’s commitment towards timely financing for MSMEs across all Sectors.
SIDBI is India’s principal financial institution engaged in Promotion, Financing and Development of Micro, Small and Medium Enterprises (MSME).
