Kotak Mahindra Bank Ltd announced that it has entered into a Memorandum of Understanding with the National Small Industries Corporation (NSIC), an Indian government enterprise, to facilitate credit to micro, small and medium enterprises (MSMEs).
As part of this merger, MSME units registered with the NSIC can now benefit from commercial loans and working capital financing tailored to the specific needs of each company at attractive interest rates.
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.
Sunil Daga, President and Head of Business Loans and Working Capital Solutions, Kotak Mahindra Bank said: âThe MSME sector is essential for the recovery and growth of the Indian economy. Through this combination with NSIC, we want to partner with small businesses across the country by offering them a range of attractive financing options, customized to meet the requirements of small business owners and supported by digital solutions. This will help them overcome the current crisis and contribute to their future growth. “
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:
- Wide range of business loans and working capital solutions at attractive interest rates
- Fluid documentation journey and rapid loan sanctioning process
- Free collection and payment by check / NEFT / RTGS / money transfer
- Wide range of services offered such as import-export financing, foreign currency term loan, invoice discounting, seller / dealer financing, etc., non-fund based facilities, bank guarantee, letter of credit and buyer credit
- Facilities such as online / mobile banking, cash management services, electronic tax and KMBL’s Forex Live platform to reserve foreign currencies
At around 11:32 am, Kotak Mahindra Bank was trading at Rs 1,670.65 each, up Rs 6.1 or 0.37% on BSE.