The Small Industries Development Bank of India (SIDBI) has signed an MoU with SAARC Development Fund (SDF) for mutual cooperation and collaboration. The MoU was signed by SIDBI Deputy Managing Director A K Kapur and SDF CEO Sunil Motiwal. The MoU envisages SDF and SIDBI to work together in co-funding of projects in Indian MSMEs on risk sharing basis in identified sectors. The MoU also focuses on the development of suitable financial products for SME financing for MSMEs of other Saarc states. The MoU further deals witt technology transfer and making available software to MFIs regarding loan tracking systems in other SAARC states.

Did You Know?

• Small Industries Development Bank of India is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises (MS was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• Currently the ownership is held by 34 Government of India owned / controlled institutions.
• Beginning as a refinancing agency to banks and state level financial institutions for their credit to small industries, it has expanded its activities, including direct credit to the SME through 100 branches in all major industrial clusters in India.
• Besides, it has been playing the development role in several ways such as support to micro-finance institutions for capacity building and on lending.
• Recently it has opened seven branches christened as Micro Finance branches, aimed especially at dispensing loans up to₹5 lakh.