New Delhi: Bank of Baroda (BoB) has partnered with the Small Industries Development Bank of India (SIDBI) to introduce the bob Earth Circular Economy Scheme (MSE Spice) under its Green & Sustainable product category.Â
The initiative is aimed at helping micro and small enterprises (MSEs) adopt sustainable practices and align with India’s climate and sustainability goals.
The Memorandum of Understanding (MoU) was signed in New Delhi by Madhur Kumar, Chief General Manager, MSME Banking, Co-Lending & SCF Department, Bank of Baroda, and R. K. Singh, Chief General Manager, Green Climate Finance Vertical, SIDBI. The signing was witnessed by Rachna Mishra, General Manager, Government Relationship Department, BoB, and S. R. Meena, General Manager, SIDBI.
Key Features of the Scheme
The MSE Spice scheme offers several benefits to small businesses seeking to adopt green technologies:
- 25% capital subsidy for eligible MSEs investing in sustainable solutions.
- Collateral-free loans under the CGTMSE framework.
- Relaxed margin requirements to ease access to credit.
- Support for eco-friendly investments, including energy efficiency, waste reduction, and sustainable production.
Boost to Green Finance
With this partnership, Bank of Baroda strengthens its green finance portfolio, positioning itself as a key driver of sustainability-linked lending in the public sector banking space. For SIDBI, the scheme builds on its role as the nodal institution for MSME financing and development, enhancing inclusive and sustainable credit access.
Aligning with National Goals
The scheme supports India’s commitments under the Paris Agreement, the government’s vision of Aatmanirbhar Bharat, and the country’s target of achieving net-zero emissions by 2070.
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