NSIC Signs MoUs with Leading Private Banks to Boost Credit Access for MSMEs

In a significant move to strengthen credit availability, accessibility, and affordability for Micro, Small, and Medium Enterprises (MSMEs), the National Small Industries Corporation (NSIC) entered into a series of strategic Memoranda of Understanding (MoUs) with leading private sector banks on August 11, 2025. Partnering institutions include Axis Bank, Dhanlaxmi Bank, Karnataka Bank, AU Small Finance Bank, and IndusInd Bank. These collaborations fall under NSIC’s flagship MSME Credit Facilitation Program, aimed at bridging the financing gap for small businesses and connecting them to formal banking channels.

The high-profile event was graced by Shri Jitan Ram Manjhi, Union Minister of MSME, and Shri S.C.L. Das, Secretary (MSME). The MoUs were formally exchanged between Shri Gaurav Gulati, Director (Finance), NSIC, and senior officials representing each participating bank. The ceremony also saw the presence of Ms. Mercy Epao, Joint Secretary (SME), Dr. S.S. Acharya, Chairman & Managing Director of NSIC, and other dignitaries from both the government and the banking sector.

Strengthening Financial Inclusion for MSMEs

The collaboration is designed to provide MSMEs with easier access to credit, enabling them to expand operations, invest in technology, and enhance competitiveness. By acting as a facilitator, NSIC will guide entrepreneurs through the credit application process, ensuring that eligible enterprises are linked to the most suitable financial products offered by the partner banks. This partnership is expected to play a crucial role in integrating smaller enterprises into the formal financial ecosystem—an essential step for sustainable growth in the sector.

Expanding Bank Outreach to the Last Mile

One of the key objectives of the initiative is to encourage banks to extend their services to underserved regions and entrepreneurs who have traditionally faced barriers in accessing formal credit. By leveraging NSIC’s deep-rooted network of MSMEs and the banks’ extensive product portfolios, the arrangement will act as a force multiplier—allowing credit facilities to reach entrepreneurs in rural and semi-urban areas. This targeted outreach is expected to drive entrepreneurship, promote self-reliance, and generate employment opportunities across the country.

A Step Towards ‘Ease of Doing Business’

The MoUs also align with the Government of India’s broader agenda of promoting ease of doing business for MSMEs. By simplifying credit facilitation and ensuring transparent processes, the initiative will help reduce delays and procedural complexities that often discourage small businesses from seeking formal loans.

With the signing of these agreements, NSIC and its partner banks have reaffirmed their commitment to empowering MSMEs—the backbone of India’s economy—through timely, affordable, and accessible financial support.