(MENAFN- KNN India) Micro and small scale enterprises in Karnataka can now avail financial assistance up to Rs 50 lac without any hassle. Unveiling this small industry friendly facility, Karnataka Small Scale Industries Association (KASSIA) and KASSIA Credit Cooperative Society Ltd signed a MOU with SIDBI to help the small industrial units to meet their capital expenditure.
The MOU was signed by CGM, SIDBI, Ram Nath; President, KASSIA, Chidananda M. Rajamane and President, KCCSL, Vishwanathaiah, in the presence of C&MD, SIDBI, Kshatrapathi Shivaji on Friday.
Explaining the terms of the MOU, Rajamane said as per the understanding, KCCSL will identify the eligible micro and small scale enterprises who are members of KASSIA and in need of financial assistance and take care of the initial preliminary procedures such as obtaining application in prescribed format and other required documents and forward the same to SIDBI along with their recommendation.
"After the loan is sanctioned by SIDBI as per the bank's norms, KCCSL shall follow up with the borrower units for dues if any, submission of periodical financial statements and returns, etc., and also alert the lender of any early warning signal in case of the unit going bad," he said.
Rajamane revealed that the SIDBI MD had called on Canara Bank to consider partnering with KASSIA to strengthen credit delivery to MSMEs.
Addressing the gathering, Shivaji said the newly proposed Mudra Bank will largely meet the critical bottleneck of finance for small businesses that formed the bottom of the pyramid.
He also explained that SIDBI was providing gap funding towards promoter's contribution, apart from various kinds of credit to MSMEs. A move to make credit sanction online was also under consideration.
Vishwanathaiah informed that the Society had recently started chit fund facility for its member units.
GM, SIDBI, Bangalore, K Sathianandan, gave a presentation on the latest initiatives taken by the bank.
President, Sampathraman; Vice-President, FKCCI, M.C. Dinesh; General Secretary, KASSIA, NC Gopinathan; office bearers of KASSIA, past presidents and council members took part in the interaction.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.