SIDBI Signs MoU with Federal Bank to Enhance MSME Financing.

Banking & Finance

In March 2025, Lucknow (Uttar Pradesh, UP)-based Small Industries Development Bank of India (SIDBI) and Aluva (Kerala)-based Federal Bank Limited (FBL) signed a Memorandum of Understanding (MoU) to provide financial support to Micro, Small, and Medium Enterprises (MSMEs).


      - The MoU was signed by Prakash Kumar, Deputy Managing Director (DMD), SIDBI, and Harsh Dugar, Executive Director (ED), FBL, in the presence of senior officials from both SIDBI and FBL.

     

     

Main Point :-   (i) This partnership aims to strengthen the MSME ecosystem by offering various financial services, including project financing, machinery and equipment financing, working capital support (such as letters of credit and bank guarantees), and loans against property.

      (ii) Under this agreement, both institutions will explore joint financing options to extend credit facilities to MSMEs.


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