New Delhi: The National Small Industries Corporation (NSIC) has signed Memoranda of Understanding (MoUs) with several private sector banks to facilitate easier credit access for micro, small and medium enterprises (MSMEs) under its MSME Credit Facilitation Programme.

The agreements were inked on August 11 with Axis Bank, Dhanlaxmi Bank, Karnataka Bank, AU Small Finance Bank and IndusInd Bank, NSIC said in a statement.

Union MSME Minister Jitan Ram Manjhi and MSME Secretary S C L Das were present on the occasion. The MoUs were exchanged between NSIC Director (Finance) Gaurav Gulati and senior officials of the participating banks in the presence of Joint Secretary (SME) Mercy Epao and NSIC CMD Dr S S Acharya.

The collaboration seeks to ensure availability, accessibility and affordability of credit to MSMEs by linking them to the formal financial system. It also aims to enhance banks' outreach to deserving micro and small businesses through structured handholding support.

According to NSIC, the tie-up is expected to act as a force multiplier in expanding credit penetration and strengthening the MSME ecosystem. The banks, in partnership with NSIC, will extend tailored financial products and advisory support to enterprises in need of working capital and term loans.

The initiative forms part of the Centre's broader effort to improve credit flow to MSMEs, which play a vital role in employment generation and economic growth.