IDBI to give loans to MSMEs at 1% lower interest rates

New Delhi, May 24 (KNN) IDBI Bank has entered into an agreement with industry body, Federation of Indian Chambers of Commerce and Industry (FICCI), under which it will provide loans to micro, small and medium enterprises (MSME) at one percentage point 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).
 
Under the deal IDBI Bank will offer loans to MSME with a concession of 100 bps or 1 per cent. It has agreed to charge a low processing fee of 0.10 per cent on the proposals referred by 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 of IDBI Bank B K Batra said after signing of the agreement here.
 
"IDBI Bank will continue to play a leading and active role in promoting development of MSME sector in the country," Batra said.
 
Secretary General OF FICCI and FICCI-CMSME, A Didar Singh 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.”