The State-run IDBI Bank on Tuesday said it has signed an agreement with Mudra Bank for refinancing of loans given to small enterprises.
“As per the agreement, the Bank will offer credit facilities up to Rs 10 lakh to micro enterprises, at a competitive interest rate under Pradhan Mantri Mudra Yojana (PMMY) and Mudra will be providing refinance assistance to the bank for eligible sanctioned loan cases,” IDBI Bank said in a release.
The refinance scheme will be implemented through all the branches of the lender.
The agreement was signed on July 1 by IDBI Bank Executive Director S K V Srinivasan and Mudra Bank CEO Jiji Mammen.
Last week, Bank of Maharashtra had also signed an agreement with Mudra Bank for refinancing of loans given to new entrepreneurs and small businesses.
