SIDBI, Bank of Baroda join hands to step up credit flow to MSMEs, startups
New Delhi, Nov 18 – Small Industries Development Bank of India (SIDBI) and Bank of Baroda, a government‑owned bank, inked a Memorandum of Understanding (MoU) on Tuesday to boost finance for India’s MSMEs and startups.
The partnership will combine SIDBI’s deep experience in MSME lending with Bank of Baroda’s extensive branch network. Together, they aim to speed up credit delivery and widen working‑capital access for businesses across the country.
Bank of Baroda will roll out a tech‑enabled working‑capital platform for borrowers who receive SIDBI’s loan sanction. This means SMEs can get the cash they need faster and with fewer hurdles.
Startups also stand to benefit. The MoU will coordinate SIDBI’s venture‑debt programme with Bank of Baroda’s dedicated startup banking services, offering tailored financial products, advisory support, and ready-to‑use solutions.
Beyond domestic lending, the banks will help high‑growth MSMEs and startups tap into Bank of Baroda’s global network. Export‑related banking, market‑access insights, and international financing options will be made available to firms looking to go global.
The agreement also includes joint initiatives for MSME clusters, incubators, and accelerators around India. These programmes aim to create a stronger ecosystem where businesses can collaborate, learn, and grow.
The MoU was signed in front of key officials, including M. Nagaraju, Secretary of the Department of Financial Services, Manoj Mittal, CMD of SIDBI, and senior Bank of Baroda executives. Nagaraju said the collaboration would “create a stronger credit ecosystem for MSMEs and startups by combining SIDBI’s financing models with Bank of Baroda’s nationwide and international reach.”
During the signing, NDA Secretary Nagaraju distributed sanction letters to selected MSMEs, showcasing the immediate support coming through the new partnership.
SIDBI’s CMD Manoj Mittal highlighted that for the past 35 years, the institution has shaped India’s small‑business funding landscape through a mix of direct, indirect and digital interventions. He added that this MoU “deepens our ability to jointly support MSMEs and high‑potential startups through venture debt, digital credit, and coordinated working‑capital solutions, accelerating India’s enterprise growth narrative.”
With this partnership, both banks signal a clear push to make finance more accessible, especially for the next generation of Indian entrepreneurs.
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