Allahabad Bank signs MoU with CIMSME to shore up priority sector lending
Allahabad Bank has inked an MoU with the Chamber of Indian Micro, Small and Medium Enterprises (CIMSME) to prop up its priority sector lending.
CIMSME communicates the interests of companies in MSME sector, with banks, financial institutions, concerned ministries and other organizations.
What is the agreement?
As per the pact, CIMSME would mobilize proposals from its members for consideration of the bank. Once the loan is approved, the organization would support the bank in follow-up and recovery of dues and provide early warning signals, if any.
How will it help?
The agreement will help speed up the process of disposal of loan proposals under MSME and help the bank collect quality proposals and enhance credit flow to the sector.