Union Bank enters co-financing agreement with SIDBI for MSMEs

Mumbai, June 2 (KNN) Small Industries Development Bank of India (SIDBI) and Union Bank of India have signed a MoU for a co-financing arrangement for Micro, Small and Medium Enterprises (MSMEs).

Under the pact, Union Bank of India would consider Joint financing/ Co-Financing with SIDBI to Projects/Units in the MSME. This MoU would help the banks 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 and term loan and working capital financing to MSMEs. Initially the arrangement would be at specific centers and once the arrangement stabilizes at these centers, more locations would be covered.

The pact was signed by Lal Singh, CGM, Union Bank of India and Vivek Kumar Malhotra, CGM, SIDBI.

Calling MSME as one of the key sectors of the Indian Economy, Singh said “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 the 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.”   

Addressing the tie-up arrangement, Malhotra reiterated SIDBI’s commitment towards timely financing for MSMEs across all sectors.  (KNN Bureau)