In a move aimed at improving access to affordable finance for micro, small and medium enterprises (MSMEs), the National Small Industries Corporation (NSIC) has signed a Memorandum of Understanding (MoU) with Bank of Baroda under its MSME Credit Facilitation Programme. The agreement, formalised during the MSME Conclave held in Bengaluru on October 10, 2025, underscores the government’s continued focus on ensuring that MSMEs receive seamless credit support to sustain growth and competitiveness.
The signing ceremony was attended by Sushri Shobha Karandlaje, Hon’ble Minister of State for MSME, Government of India, along with senior officials including Dr. S. S. Acharya, Chairman and Managing Director of NSIC, Ateesh Kumar Singh, Joint Secretary, Ministry of MSME, and representatives from the Karnataka Small Scale Industries Association (KASSIA).
Enabling Access, Affordability and Inclusion
The collaboration aims to make credit more accessible, affordable and inclusive for small businesses across India. Through this partnership, NSIC will help MSMEs connect with Bank of Baroda to obtain timely loans for working capital, capacity expansion and technology upgradation.
The MSME Credit Facilitation Programme, launched by NSIC, acts as a bridge between small businesses and financial institutions. It helps entrepreneurs prepare documentation, submit loan applications, and access collateral-free loans under various government schemes. The NSIC also provides handholding support for entrepreneurs who face challenges in navigating complex banking procedures.
Bank of Baroda, one of India’s leading public sector banks, brings an extensive nationwide network and a range of MSME-focused products under its umbrella. This partnership is expected to help thousands of small enterprises, especially those in Tier 2 and Tier 3 cities, obtain financing under priority sector lending norms.
Government Push for MSME Financing
The Ministry of MSME has been actively encouraging banks to collaborate with institutions like NSIC to close the credit gap affecting smaller firms. Despite MSMEs contributing nearly 30% to India’s GDP and 45% to exports, access to formal finance remains a major constraint. Many businesses still rely on informal credit sources due to procedural hurdles and lack of collateral.
Minister Shobha Karandlaje, while addressing the gathering, reaffirmed the government’s commitment to expanding financial inclusion through strategic partnerships. “The aim is to ensure that MSMEs across every corner of the country have equal access to credit, digital tools, and market opportunities,” she said.
Also read: MSMEs Drive 40% of India’s Output and Exports: Karandlaje
Strengthening the MSME Growth Ecosystem
This MoU aligns with the government’s larger mission of empowering MSMEs as part of the ‘Viksit Bharat 2047’ vision. With NSIC’s handholding support and Bank of Baroda’s lending strength, the alliance is expected to help enterprises grow sustainably, adopt digital processes, and scale their operations.
The collaboration also signals a wider trend of synergy between development institutions and commercial banks — a necessary step to unlock the full potential of India’s MSME sector and create a more resilient, self-reliant industrial base.