SIDBI has entered into a Memorandum of Understanding (MoU) with Federal Bank (FBL) to enhance financing support for micro, small, and medium enterprises (MSMEs) and strengthen the MSME ecosystem in Mumbai.

The collaboration aims to facilitate financial assistance in key areas such as project financing, machinery and equipment purchases, and working capital requirements. Additionally, it will cover financial solutions including letters of credit, bank guarantees, and loans against property to help MSMEs manage their funding needs efficiently.

As part of this partnership, SIDBI and FBL will explore joint financing opportunities to expand credit access for MSMEs. This initiative is expected to provide businesses with improved financial support, enabling growth and sustainability in the sector.

The MoU was formalised during a signing event attended by senior representatives from both organisations, marking a strategic effort to drive financial inclusion and economic development for MSMEs.

News source: PSU Connect