NSIC collaborates with private banks to boost MSMEs' credit access

Mumbai, Aug 14 (IANS) Government PSU, the National Small Industries Corporation (NSIC), signed Memorandums of Understanding (MOU) with several private sector banks to enhance the availability of credit for MSMEs under its MSME Credit facilitation programme, an official statement said.

The MOUs also aim to enhance accessibility and affordability of the credit to MSMEs, an official statement said.

The MOUs were signed with Axis Bank, Dhanlaxmi Bank, Karnataka Bank, AU Small Finance Bank, and IndusInd Bank, the release said.

Union MSME Minister Jitan Ram Manjhi and MSME Secretary S.C.L. Das were also present on the occasion. "The MoUs were exchanged between NSIC's Director, Finance, Gaurav Gulati and senior officials from various banks," the release said.

The collaboration aims to extend handholding support to MSMEs and help them link to the formal financial system. The MOU focuses on the banks to expand their outreach to deserving micro & small enterprises, and the arrangement is expected to be a force multiplier in the efforts of banks to reach the last mile, it added.

This development aligns with Prime Minister Narendra Modi's recent calls for the ‘Vocal for Local’ initiative. It encourages citizens and businesses to prioritise locally made products over imports to promote domestic manufacturing, create jobs, and boost the local economy.

Pradhan Mantri MUDRA Yojana (PMMY), since its inception, has sanctioned 53.85 crore loans amounting to over Rs 35.13 lakh crore. The PMMY provides collateral-free credit of up to Rs 20 lakh to micro and small enterprises, thereby enabling self-employment and income generation.

More than 10 lakh micro and small enterprises (MSEs) have joined the Government e-Marketplace (GeM) portal, and the total transaction value on GeM has reached around Rs 5.40 lakh crore in FY2024-25

NSIC, a PSU under the MSME Ministry, has been working to promote, aid and foster the growth of MSMEs since 1955 in India, and has been a frontrunner in bringing new initiatives for MSMEs and solving their challenges by facilitating through various schemes.

--IANS

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