Micro and small-scale enterprises in Karnataka can now avail of financial assistance up to Rs. 50 lakh without any difficulty.
Small industry-friendly facility, Karnataka Small Scale Industries Association (KASSIA) Credit Cooperative Society Ltd. (KCCSL) on Friday signed an MoU with SIDBI to help small industrial units meet their capital expenditure.
The MoU was signed by Ram Nath, chief general manager, SIDBI, and Chidananda M. Rajamane, president, KASSIA, and Vishwanathaiah, president, KCCSL, in the presence of Kshatrapathi Shivaji, chairman and managing director, SIDBI.
Identifying firms
Explaining the terms of the pact, Mr. Rajamane said the KCCSL would identify the eligible micro and small-scale enterprises that are members of the KASSIA and in need of financial assistance.
It would take care of the initial preliminary procedures and documents required and forward them to SIDBI along with their recommendation.
Credit delivery
Mr. Rajamane said SIDBI was in talks with Canara Bank to consider partnering with KASSIA to strengthen credit delivery to MSMEs. Mr Shivaji said the proposed Mudra Bank would largely meet the critical bottleneck of finance for small businesses.
A move to make credit sanction online was also under consideration, he said.
