Hotline: 1800 102 2007
X
Search Business Opportunities
2014-05-26

IDBI Bank to charge 1% lower interest on MSME loans

IDBI Bank recently signed an agreement with industry body Ficci under which it will offer loans to micro, small and medium enterprises (MSME) at one percent lower interest than the market rates and also charge low processing fee.

IDBI Bank recently signed an agreement with industry body Ficci under which it will offer loans to micro, small and medium enterprises (MSME) at one percent lower interest than the market rates and also charge low processing fee.

 

A memorandum of understanding (MoU) was signed here between IDBI Bank and Ficci Confederation of Micro, Small and Medium Enterprises (Ficci-CMSME).

 

"The MoU would help IDBI Bank in further increasing its reach to the MSME sector. IDBI Bank is focused on expanding its lending to this sector in view of the fact that the MSME is a key driver of Indian economy in terms of contribution to GDP, employment and exports," Deputy Managing Director, IDBI Bank, B. K. Batra said.

 

"IDBI Bank will continue to play a leading and active role in promoting development of MSME sector in the country," Batra said.

 

Access to organised finance is a big challenge for the Indian micro, small and medium enterprises.

 

According to a study by the International Finance Corporation, there is a formal finance gap of Rs 20.9 trillion ($418 billion) to the MSME.

 

Under the deal IDBI Bank will offer loans to MSME with a concession of 100 bps or 1 percent. It has agreed to charge a low processing fee of 0.10 percent on the proposals referred by Ficci-CMSME.

 

Speaking on the occasion, Ficci, Secretary General, A Didar Singh said: "Timely availability of credit at the right cost is the key expectation of industry from their banks. While large corporates manage to get the attention of bankers, often the smaller companies have a disadvantage in sourcing credit at right cost and right time."

 

"MSMEs are known as highest employment generator after agriculture hence, it is imperative to provide an ecosystem that could facilitate their financing, marketing, technological, infrastructural needs and make them more competitive," said Sanjay Bhatia, president of Ficci MSME committee.

 

"Easy and faster financing options could provide a trigger for faster, inclusive growth for MSMEs," Bhatia said.

Related opportunities
  • Car wash / Ceramic Coating / Detailing
    About Us: Across the globe, 3M is inspiring innovation and igniting..
    Locations looking for expansion Delhi
    Establishment year 1950
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Run your own preschool & provide quality education by joining..
    Locations looking for expansion Tamil Nadu
    Establishment year 2000
    Franchising Launch Date 2015
    Investment size Rs. 2lac - 5lac
    Space required 900
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Chennai Tamil Nadu
  • Pathological Labs
    About Us: Established in 1995 by Dr. Vinay Goel, Lifecare Diagnostics..
    Locations looking for expansion Maharashtra
    Establishment year 1995
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Casual dine Restaurants
    About: Established in 2009, Roti Aur Boti is a concept-based QSR..
    Locations looking for expansion Delhi
    Establishment year 2009
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts