Kotak Mahindra Bank Ltd (KMBL) has entered into a memorandum of understanding with the National Small Industries Corporation (NSIC) to facilitate lending to micro, small and medium-sized enterprises (MSMEs), the company said on Monday. NSIC is an Indian government enterprise.
As part of this merger, MSME units registered with the NSIC will be able to benefit from commercial loans and working capital, tailored to the specific needs of each company at attractive interest rates.
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“The MSME sector is essential for the recovery and growth of the Indian economy. Through this partnership with NSIC, we want to partner with small businesses across the country by offering them a range of attractive financing options, tailored to meet the demands of small business owners and backed by digital solutions first. “Sunil Daga, President and Head – Business Loans and Working Capital Solutions at KMBL said.
“This will help them overcome the current crisis and contribute to their future growth,” he added.
Some of the additional benefits for MSMEs include digital submission of loan-related documents, quick loan penalties, and access to KMBL’s full range of cash management services that will help MSMEs use cash efficiently.
Benefits of Kotak Business Solutions for NSIC Members:
1. Wide range of business loans and working capital solutions at attractive interest rates.
2. Smooth documentation journey and rapid loan sanctioning process.
3. Free collection and payment by check / NEFT / RTGS / money transfer.
4. Wide range of services offered such as import-export finance, foreign currency term loan, bill discounting, seller / dealer finance, etc., non-funds facilities, bank guarantee, letter of credit and buyer credit.
5. Facilities such as online / mobile banking, cash management services, electronic tax and KMBL’s Forex Live platform to reserve foreign currencies.
NSIC, an ISO certified company under the Ministry of MSMEs, strives to promote, assist and foster the growth of MSMEs in the country. The pandemic-induced lockdown has negatively impacted many businesses and this merger will provide a boost to businesses that need working capital and business loans to grow their businesses.
