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IDBI Bank has inked a pact with KfW of Germany for a $340-million loan facility. The Mumbai-based public sector lender will draw the money to finance infrastructure, micro, small and medium enterprises (MSMEs).
The agreement was signed in Delhi. The loan had a maturity of 10 years and carries a competitive rate of interest, IDBI Bank said in a statement on Thursday. A part of the loan is dedicated for selected infrastructure projects to support municipalities and communities to improve health and living conditions.
Melwyn Rego, deputy managing director, IDBI Bank, said the bank was committed to provide financial support to the MSME sector which is one of their thrust areas.
"The loan will provide further impetus in our endeavour of meeting the growing financial needs of this sector which plays a vital role in the country’s economic growth," he said.
"With this credit line, KfW is providing the bank with an important and broadly effective contribution towards creating income and fighting poverty in India. The growth among small companies triggers local demand and consumption, secures employment and is a key factor in the creation of new jobs,” he added.
