In a move towards facilitating easy access of credit to micro, small and medium-scale enterprises, Coimbatore District Small Industries’ Association (CODISSIA) has signed an agreement with Small Industries Development Bank of India (SIDBI).
A press release from CODISSIA said that all MSME members of the association can apply for loan from SIDBI through CODISSIA. Both, product manufacturers and job-working units, can make use of the facility and 20 per cent should be the contribution from the promoters. The units can apply for term loans for purchase of any fixed asset. Detailed project reports are not needed. The limit for each applicant will be based on the internal criteria of SIDBI. The tenure of the loan will go up to 84 months, including moratorium of six months to 18 months and maximum loan amount of Rs. 75 lakh for a borrower, based on the eligibility criteria set by the bank. The credit guarantee scheme cover or any other security that is acceptable to SIDBI will be considered.
A press release from CODISSIA said that all MSME members of the association can apply for loan from SIDBI through CODISSIA. Both, product manufacturers and job-working units, can make use of the facility and 20 per cent should be the contribution from the promoters. The units can apply for term loans for purchase of any fixed asset. Detailed project reports are not needed. The limit for each applicant will be based on the internal criteria of SIDBI. The tenure of the loan will go up to 84 months, including moratorium of six months to 18 months and maximum loan amount of Rs. 75 lakh for a borrower, based on the eligibility criteria set by the bank. The credit guarantee scheme cover or any other security that is acceptable to SIDBI will be considered.