News

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

Economy Business | Dated: 27 Mar 2025

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).

🎯 Key Highlights:

- 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.

💡 Other Important Facts:

(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.

📚 Test Your Knowledge:

Recently, which financial institution signed an MoU with CMAI & SICS to strengthen the textile MSME sector?

Correct Answer: SIDBI

🚀 Quick Recap:

About SIDBI

Chairman & MD : Manoj Mittal
Headquarters : Lucknow,