SIDBI partners with VFS to extend MSME loans

VFS Capital will extend MSME loans upto Rs 5 lakh at 13 per cent interest rate per annum, a top company official said.

PTIUpdated: Monday, January 16, 2023, 05:26 PM IST
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SIDBI partners with VFS to extend MSME loans | File ;/ Representative Image

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.

Expand to north-western parts

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.

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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