MoU with SIDBI for promoting MSMEs.
Our bank has entered into an MoU with SIDBI for co-financing of working capital limits under SMILE & SAS Schemes of SIDBI. SIDBI will support MSMEs by sanctioning term loan or through providing quasi-equity while Vijaya Bank will meet the working capital requirements.
1.Under Co-financing arrangement, SIDBI will fund the project by providing soft loan in the nature of quasi equity and term loan and forward the proposal to our Bank for need based working capital, under ‘SIDBI Make In India Soft Loan Fund for Micro, Small and Medium Enterprises (SMILE) Scheme’ to the identified 25 Make in India sectors under MSME. Our bank shall finance working capital facility to eligible MSMEs on merit and as per our extant guidelines.
2. Under ‘Scheme for Start-up Assistance Scheme’ (SAS), SIDBI provides structured finance through Optionally Convertible Debt, Sub-debt etc., for Start Ups/Early stage enterprises and our bank shall provide working capital if required as per our extant guidelines. This scheme is for Start Ups and early stage enterprises which traditionally do not involve physical assets like, technology, biotech, web/mobile based business, clean technologies, social ventures etc.
3. Click Here for the scheme guidelines of SIDBI in respect of SMILE and SAS.