 "SIDBI partners with VFS to extend MSME loans upto Rs 5 lakh at 13% p.a.")
The Small Industries Development Bank of India (SIDBI) has entered into a partnership with VFS Capital to extend loans to the MSME sector, the Kolkata-based microfinance institution said.
VFS Capital will extend MSME loans upto Rs 5 lakh at 13 per cent interest rate per annum, a top company official said.
"We have tied up with SIDBI to provide loans to the SME and MSME sectors. VFS Capital expects to disburse Rs 30-40 crore under the scheme this fiscal, MD and CEO Kuldip Maity said.
The loan book of the MFI during 2022-23 is expected to be around Rs 1,100-1,200 crore from Rs 805 crore in the last financial year, he said.
Maity said the company is planning to expand its footprint in the north-western part by launching operations in Rajasthan by the end of January.
At present, it operates in 13 states including West Bengal, Assam and Tripura.
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VFS Capital also plans to add 35 branches within this fiscal, taking the number to 270 across the country.
We aim to raise Rs 100 crore in 2023-24, Maity added.
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