The Small Industries Development Bank of India and Codissia, the apex association of small industries, have entered in an agreement aimed at facilitating easy access to credit for the smaller units in the MSME segment. As per the agreement, all MSME members of Codissia can apply to SIDBI through the association. Promoters’ contribution of 20% is required. Term loans can be for purchase of fixed assets and for tenure of up to 84 months, including moratorium of 6-18 months. The maximum limit is ₹75 lakh, based on SIDBI’s eligibility criteria. Codissia president EK Ponnuswamy said the pact is an exclusive financial arrangement for the MSMEs and Codissia members in particular. It is a mutually agreed loan delivery mechanism, he said.
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