SIDBI partners with regional rural bank APGB in Andhra Pradesh for refinancing

Credit and Finance for MSMEs: APGB general manager P. R. Padgetwar said APGB started operations in 2006 by providing loans to agriculture and self-help groups in rural areas and then expanded services to urban and semi-urban areas with more focus on providing credit to MSMEs. 

SIDBI partners with regional rural bank APGB in Andhra Pradesh for refinancing
A memorandum of understanding was signed and exchanged by APGB general manager P. R. Padgetwar and SIDBI, Vijayawada deputy general manager, P. Rajendra Prasad. (Image: pexels)

Credit and Finance for MSMEs: Small and Medium Enterprise Development Bank of India (SIDBI) has announced a partnership with Andhra Pradesh’s regional rural bank Andhra Pragati Gramina Bank (APGB) to provide refinance facility to the latter for credit availability to MSMEs in the state, The Hindu reported. A memorandum of understanding was signed and exchanged by APGB general manager P. R. Padgetwar and SIDBI, Vijayawada deputy general manager, P. Rajendra Prasad, according to the report citing a release by SIDBI, Hyderabad deputy general manager Thota Vidyasagar.

“We are proud to partner with SIDBI as the first Regional Rural Bank (RRB) to participate in their vision of empowering the MSMEs,” stated Padgetwar. Padgetwar also mentioned that APGB started operations in 2006 by providing loans to agriculture and self-help groups in rural areas and then expanded services to urban and semi-urban areas with more focus on providing credit to MSMEs. 

In his comments, Prasad said that SIDBI is playing a significant role as a facilitator to strengthen the MSME ecosystem in the country and this arrangement with APGB will help to upscale the MSME segment, especially in semi-urban and rural areas.

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“We are delighted to partner with APGB and we will expand our refinance services to other banks as well,” he added.

SIDBI has been extending refinance to various commercial banks, small finance banks, non-banking financial companies, urban co-operative banks, and others which in turn provide credit to MSMEs. SIDBI also provides direct financing to small businesses through long-term loans, working-capital facilities, etc.

In July this year, SIDBI had announced a refinance agreement with Mumbai-headquartered urban co-operative bank SVC Co-operative Bank and a co-financing arrangement with the Union Bank of India in June for MSMEs. In January this year, it had announced sanctioning of Rs 650 crore in financial assistance to two small finance banks — AU Small Finance Bank and Jana Small Finance Bank.

Also read: FE Exclusive: SIDBI to launch a CIBIL-like score for MSMEs

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