NSIC Signs MoUs with Private Sector Banks to Boost MSME Credit Access under Credit Facilitation Program
- REEDLAW
- 21 hours ago
- 2 min read
REEDLAW Legal News Network reports: In a significant initiative to strengthen MSME financing, the National Small Industries Corporation (NSIC) signed Memoranda of Understanding (MoUs) with several leading private sector banks on 11 August 2025 under its Credit Facilitation Program. The move was aimed at widening credit accessibility for micro and small enterprises by linking them with formal banking channels, thereby enhancing financial inclusion and reducing barriers to timely funding.
The MoUs were signed with Axis Bank, Dhanlaxmi Bank, Karnataka Bank, AU Small Finance Bank, and IndusInd Bank, marking a significant step in expanding the credit ecosystem for small enterprises. The collaboration seeks to provide structured handholding support to MSMEs and connect them with the formal financial system, thereby enhancing their financial inclusion and access to timely credit.
The exchange of MoUs took place in the presence of Shri Jitan Ram Manjhi, Union Minister of MSME, and Shri S.C.L. Das, Secretary (MSME). Senior dignitaries, including Shri Gaurav Gulati, Director (Finance), NSIC, Ms. Mercy Epao, Joint Secretary (SME), and Dr. S.S. Acharya, CMD, NSIC, along with senior officials of the participating banks, attended the occasion.
Through this collaboration, the partner banks are expected to expand their outreach to deserving micro and small enterprises, thereby helping bridge the credit gap faced by the sector. The arrangement is anticipated to serve as a force multiplier in banks’ efforts to reach the last mile and cater to the financing needs of enterprises that are often underserved. By linking MSMEs to structured banking support, the program is expected to catalyse entrepreneurship, foster growth, and generate employment in the sector.
This development underscores the government’s continued focus on strengthening the MSME ecosystem, which forms the backbone of India’s economy, contributing significantly to employment generation, exports, and GDP growth.
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