SIDBI partners with urban co-operative bank SVC

August 02, 2022

Principal financial institution for MSMEs SIDBI on Saturday announced a partnership, through an agreement, with Mumbai-headquartered urban co-operative bank SVC Co-operative Bank to extend refinance facility to facilitate improved credit flow to MSMEs.

The agreement was signed by Ashish Singhal, MD, SVC Bank and Sanjeev Gupta, GM, SIDBI in Mumbai. The partnership signed will allow SVC Bank to tap into SIDBI’s refinance facility. SVC Bank is the first urban co-operative bank to enter into a refinancing partnership with SIDBI.

“We have now extended our partnership with various Scheduled Commercial Banks, SFBs and NBFCs to an urban co-operative bank. The focus is on aligning with the leaders across all segments, which can boost economic participation and upscale India’s most promising aspirational powerhouses termed as MSMEs,” said Sanjeev Gupta, General Manager, SIDBI in a statement.

As the nodal agency for the MSME-related schemes of the government, SIDBI provides refinance to primary lending institutions such as banks including small finance banks, non-banking finance companies, and microfinance institutions which in turn provide credit to MSMEs. SIDBI is also engaged in direct financing of small businesses through long-term loans, working-capital facilities, etc.