To offer financial assistance up to Rs.50 lakh without hassle
Bengaluru, May 27, 2015
The Karnataka Small Scale Industries Association (Kassia) has signed an MoU with SIDBI along with its Kassia Credit Cooperative Society Ltd for hassle-free credit to MSMEs (micro, small and medium enterprises).
“The MoU will help MSMEs in Karnataka get financial assistance up to Rs.50 lakh without any hassle,” said Chidananda M Rajamane, President, Kassia.
For this small industry-friendly facility, Kassia has roped in Kassia Credit Co-operative Society Ltd and signed the MoU with SIDBI to help the small industrial units to meet their capital expenditure.
The MoU was signed by Ram Nath, CGM, SIDBI, Chidananda M Rajamane, President, Kassia, and Vishwanathaiah, president, KCCSL, in the presence of Kshatrapathi Shivaji, CMD, SIDBI.
Explaining the terms of the MoU, Rajamane said KCCSL would identify the eligible micro and small-scale enterprises who are members of Kassia and in need of financial assistance and take care of the initial preliminary procedures such as obtaining application in prescribed format and other required documents and forward the same to SIDBI along with their recommendation.
“After the loan is sanctioned by SIDBI as per the bank’s norms, KCCSL will follow up with the borrower units for dues, if any, submission of periodical financial statements and returns, etc, and also alert the lender of any early warning signal in case of the unit going bad,” he added.
Rajamane said that the SIDBI MD had sounded out Canara Bank to consider partnering with Kassia to strengthen credit delivery to MSMEs.
Kshatrapathi Shivaji, in his address said the newly proposed Mudra Bank would largely meet the financial needs of small businesses at the bottom of the pyramid.
He also explained that SIDBI was providing gap funding towards promoter’s contribution, apart from various kinds of credit to MSMEs. A move to make credit sanction online was also under consideration, he added.
Vishwanathaiah, President, KCCSL, said the society had recently started chit fund facility for its member units. K Sathianandan, GM, SIDBI, Bangalore, gave a presentation on the latest initiatives taken by the bank Business Line