JOINT/CO-FINANCING TO SME SECTOR-MOU WITH SIDBI

• MOU was signed with Small Industries Development Bank of India (SIDBI) on 06.09.2005 for Joint/Co-financing of the units.
• Joint financing/Co-financing shall be excluded to projects relating to SME sector, service sector and development of infrastructure.
• Initially this arrangement is rolled out at important Small and Medium Industrial Centres at Hyderabad, Chittore, Vijayawada, Rayadurg and Kushaiguda.
• The focus shall be to make available timely and adequate credit to tiny units & also explore possibilities of synergies in Micro credit operations and cluster Development and other development initiatives.
• A common letter of sanction detailing the terms and conditions of sanction shall be issued to the borrower by the Bank.
• Generally the Bank shall finance working capital facility to the borrower and the Term loan shall be financed by Bank and SIDBI in equal proportion or in such proportion or only by SIDBI as  may be mutually agreed to between the two parties.