Kassia signs MoU with SIDBI; to boost MSME

In a bid to solve the problems in credit flow in MSME (micro, small and medium enterprises) sector, industry body KASSIA (Karnataka State Small Scale Industries Association) and its affiliated micro financing institution, KASSIA Credit Co-operative Society (KCCSL), on Friday signed an MoU with SIDBI (Small Industries Development Bank of India).

The MoU will pave the way for smooth flow of credit facilities up to Rs 50 lakh to small and medium enterprises for their industrial activities like capital expenditure, expansion schemes, and exports.

The MoU was signed between SIDBI Chief General Manager Ram Nath, KASSIA President Chidanand M Rajamane, and KCCSL President Vishwanathaiah in the presence of SIDBI Chairman and Managing Director Kshatrapathi Shivaji.

Till date, KCCSL has financed Rs 20 crore and has 2,200 members and aims to reach 5,000 members by 2020. Its share capital in 2003 was Rs 12.72 lakh and as on March 31, 2015, it has reached Rs 180 lakh. It has fixed deposits of Rs 210.69 lakh, recurring deposits of Rs 1.54 lakh, and pigmy deposits of Rs 114.99 lakh.