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Union Bank of India Enters into MoU with NSIC to Support MSMEs

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Union Bank of India inks MOU with NSIC to support MSMEsUnion Bank of India has entered into a Memorandum of Understanding (MOU) with the National Small Industries Corporation Ltd (NSIC) under ‘NSIC Bank Credit Facilitation Scheme’ to support Micro, Small and Medium Enterprises (MSMEs) with credit requirements.

  • Under the MoU, the NSIC branch offices that are also operating as Finance Facilitation Centre (FFC) will support the MSMEs to obtain their loan requirements from the Union Bank of India.
  • The agreement was signed by P K Das, FGM-Delhi on behalf of Union Bank of India and P R Kumar CGM, NSIC.

About NSIC Bank Credit Facilitation Scheme:

i.Under this scheme, NSIC is entering into MoUs with various Nationalized and Private Sector Banks and arrange credit support (fund or non-fund based limits) from banks to meet the credit requirements of MSME units

ii.Features of the scheme:

  • Facilitates credit to MSMEs through various public and private sector banks.
  • Provides an option for MSMEs to apply for a new bank or switch over to a different bank.
  • Helps the MSMEs in completing documentation and thereafter submitting it to the bank.
  • Helps the MSMEs to get the liberal rate of interest from the banks under the Performance and Credit rating scheme of the Ministry of MSME.
  • No fee is charged from the MSME unit for applying for a loan under this scheme.

About MSME:

The classification of MSME based on investment, as per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.

Composite Criteria: Investment in Plant & Machinery/equipment and Annual Turnover
Classification Micro Small Medium
Manufacturing Enterprises and Enterprises rendering Services Investment in Plant and Machinery or Equipment:
Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore
Investment in Plant and Machinery or Equipment:
Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore
Investment in Plant and Machinery or Equipment:
Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore

Recent Related News:

On 17th March 2021, the Agricultural and Processed Food Products Export Development Authority (APEDA), under the Ministry of Commerce & Industry signed a Memorandum of Understanding(MoU) with the NSIC under the Ministry of Micro Small & Medium Enterprise(MoMSMEs) to support and empower agri entrepreneurs.

About Union Bank of India:

Establishment – November 11, 1919
Headquarters– Mumbai, Maharashtra
MD & CEO –Rajkiran Rai G.

About National Small Industries Corporation(NSIC):

Chairman-Cum-Managing Director (CMD) -Vijayendra
Headquarters – New Delhi