SIDBI and Bank of Baroda (BOB) have joined hands through an MoU to enhance credit access for MSMEs and startups.
The collaboration aims to strengthen working capital support, boost export-related financing, and streamline credit delivery, contributing to India’s Vision 2047 for a robust economy.
The MoU was signed in the presence of M. Nagaraju, Secretary of the Department of Financial Services (DFS), along with senior officials from both institutions.
“This partnership brings together the strengths of a dedicated MSME development institution and a large commercial bank to build a stronger credit ecosystem for MSMEs and startups. By combining SIDBI’s innovative financing models with Bank of Baroda’s national and international reach, this MoU will help enterprises, both traditional and new-age, access timely working capital, scale operations, and integrate into global value chains,” said M. Nagaraju, IAS, Secretary, DFS.
Manoj Ayyappan, Joint Secretary, DFS, said, “The SIDBI–Bank of Baroda partnership marks an important step in strengthening India’s MSME and startup ecosystem. By bringing together SIDBI’s developmental expertise and Bank of Baroda’s strong national and global presence, this collaboration will significantly enhance access to timely and affordable credit.
Manoj Mittal, CMD, SIDBI, said, “For 35 years, SIDBI has shaped the MSME and startup financing landscape through direct, indirect and digital interventions. This MoU deepens our ability to jointly support MSMEs as well as high-potential startups through venture debt, digital credit, and coordinated working capital solutions. We see this as a powerful opportunity to accelerate India’s enterprise growth narrative.”
Lalit Tyagi, Executive Director, Bank of Baroda, said, “Bank of Baroda is committed to supporting MSMEs and the emerging startup ecosystem. Through this partnership, we will strengthen joint financing, enhance digital credit enablement, and expand specialised banking solutions for startups. Our global presence will further help MSMEs, and startups tap export opportunities.”
The partnership aligns with the government’s goal to expand formal credit and provide more financial support to businesses that create jobs and drive innovation.
Under this agreement, SIDBI and Bank of Baroda will offer joint financing to MSMEs, combining SIDBI’s expertise in lending with BOB’s extensive branch network. MSMEs approved by SIDBI can also access BOB’s digital Working Capital Platform for faster, technology-driven credit.
The collaboration will support startups by linking SIDBI’s venture debt programs with BOB’s startup banking services, including advisory support and customised financial solutions.
The MoU also focuses on helping export-oriented MSMEs and high-growth startups by leveraging BOB’s international presence, along with joint initiatives for MSME clusters, incubators, and innovation ecosystems.
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