Last week IDBI bank signed up a MOU with the FICCI, under which bank will offer loans to the MSME segment at the lower interest rates. Under the MOU the bank will provide loans to MSME at 1% less than the market rates and will charge low processing fee of 0.10 percent on the proposals referred by Ficci-CMSME. IDBI bank is focusing to enhance and expand MSME sector. MSME segment is a key driver of Indian economy.

Deputy managing director of the bank stated that bank will continue to assist and promote the development of this segment. The signing up of the MOU with FICCI is step towards the development of MSME segment. The bank will try to accomplish the Timely availability of credit at the right cost which is the key expectation from the banks.

The faster and easy access to the loans will help the MSME segment to growth rapidly. MSMEs are known as highest employment generator, therefore it is necessary to look at the development of this sector that could facilitate their financing, marketing, technological, infrastructural needs.