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HDFC Bank signs MoU with NSIC to provide credit support to MSMEs

HDFC Bank has said it has signed a pact with the National Small Industries Corporation (NSIC) for providing credit support to the micro, small and medium enterprise (MSME) sector.

Under this, the country's largest private sector bank will also provide MSMEs with a set of specially-tailored schemes to enhance their competitiveness.

"HDFC Bank has signed a memorandum of understanding with National Small Industries Corporation to offer credit support to MSMEs across the country," the bank said in a statement.

The bank branches will extend support to the MSME projects in the areas they are located and to other important industrial sectors across the country.

Rahul Shukla, group head (commercial and rural banking) of HDFC Bank, said, the partnership will help reboot the economy and give it a required fillip.

"We believe this partnership with NSIC will help expedite the MSME sector growth, which is the backbone of the country both in terms of economic development and job creation," he said.

MSMEs contribute about 30 percent to India's GDP and is the second largest generator of employment after agriculture.

The bank said it would accept loan applications forwarded by NSIC and consider sanctioning loans on a merit basis and as per its lending policy.

HDFC Bank in the past has also rolled out digital products such as ENet and our SME services portal for MSMEs, which help in providing working capital loans, overdraft facilities to MSMEs and fulfilling their overall financial needs. Its trading platform, called Trade on Net platform, helps MSMEs in trading (import and export) digitally.