Sep 20 , The Hindu Business Line
Corporation Bank has signed a memorandum of understanding (MoU) with Andhra Pradesh Small Industries Association Vijaywada (APSIAV) for financing micro and small units in Vijaywada.
A press release said here that the tie-up will provide Corporation Bank as the preferred financier for financing micro, small and medium enterprises (MSMEs) in Vijaywada. The bank would process the application and consider sanction of limits, which could be used by such MSMEs for business related capital and working capital expenditure.
Under the MoU, Corporation Bank will extend reduction in the processing fee to 50 per cent on the applicable rates. The bank will also bear the cost of CGFTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) guarantee cover for loans sanctioned with credit limits up to Rs 5 lakh.
It said that MoU was signed by Mr B. Lakshminarayana, General Manager of Corporation Bank, and Mr D.V.K. Rama Rao, President of APSIAV, in the presence of Mr K. Parthsarathi, Andhra Pradesh Minister for Secondary Education, at Vijaywada on Monday.