Sidbi and Vijaya Bank have entered into an MoU for providing concessional finance to micro and small enterprises (MSEs). The MoU is aimed at making concessional funding available to MSEs, which is at the marginal cost of funds-based lending rate (MCLR) of the bank under refinance from Sidbi. The arrangement also envisages joint financing/co-financing of MSMEs for meeting capital expenditure under the ‘SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises’ scheme at concessional rate of 9.6%, along with working capital from Vijaya Bank. This initiative is expected to create a conducive ecosystem for MSEs desirous of accessing concessional/composite funding. Kishore Sansi, MD and CEO of Vijaya Bank, said the bank has taken several steps over the last year to pro-actively finance new entrepreneurs under the Centre’s new initiatives for MSMEs such as ‘Make in India’ and ‘Stand Up India’.