SIDBI Signs MoU with CMAI & SICS to Boost Textile MSME Sector.

Economy Business

In March 2025, Lucknow, Uttar Pradesh (UP)-based Small Industries Development Bank of India (SIDBI) entered into two significant Memorandums of Understanding (MoUs) with the Mumbai (Maharashtra)-based Clothing Manufacturers' Association of India (CMAI) and the Surat (Gujarat)-based Sachin Industrial Co-operative Society Limited (SICS).


      - This initiative aims to strengthen the Micro, Small & Medium Enterprises (MSME) segment within the textile and garment industry by providing both financial and technical assistance.

      - Under these agreements, MSME entrepreneurs will be eligible for collateral-free loans of up to Rs 5 crore (set to increase to Rs 10 crore as per the Budget 2025-26), ensuring smoother access to capital.

      - This is supported by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme.

Main Point :-   (i) CGTMSE will provide funding support of up to 90-95% under this scheme. For loans up to Rs 5 crore without collateral, only 25% of the amount must be shown as an investment.

      (ii) The interest rates for these loans will range between 8.75% and 9.75%, depending on the credit rating of the unit. The funding process for new units is expected to be completed within 30 to 45 days.


About SIDBI

Chairman & MD : Manoj Mittal
Headquarters : Lucknow,
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