NSIC in talks with SBI for cheap loans for MSMEs

NEW DELHI: National Small Industries Corporation ( NSIC) is in talks with the State Bank of India for a pact, under which the country's largest lender would provide easy and affordable credit to small and medium-sized firms.

NSIC has already signed such pacts with banks like Yes Bank, Axis Bank and Central Bank of India.

"More and more banks are coming up to sign agreements with us as they want MSMEs to be their customers. Now we are in negotiations with State Bank of India," NSIC Chairman-cum- Managing Director H P Kumar told PTI.

Kumar also said that the corporation is helping the units in getting credit ratings from firms like Crisil and Fitch.

The rating helps them in getting loans at concessional rates, Kumar said, adding that during the fiscal, NSIC would assist about 18,000 MSMEs to get the ratings.

Almost 10,200 units got ratings in the last fiscal year. NSIC provides coal, steel and aluminium to small firms at bulk discount rates.

MSMEs face credit crunch as they fail to fulfil collateral requirements and have limited access to equity capital. There are about 26 million enterprises, which provide employment to almost 60 million people. PTI TA RR SHT 06231406 NNNN