SIDBI and Bank of Baroda Forge Strategic Partnership to Expand Credit Access for MSMEs and Startups

The Small Industries Development Bank of India and Bank of Baroda have entered into a strategic collaboration designed to deepen credit access for micro, small and medium enterprises and emerging startups. The agreement reinforces the national objective of building a stronger, innovation-driven enterprise ecosystem as India advances toward its Vision 2047 goals.

The Memorandum of Understanding was signed in the presence of M. Nagaraju, Secretary in the Department of Financial Services, signalling high-level support for initiatives that widen formal credit channels and strengthen the financial architecture for growth-oriented businesses.

A core pillar of the partnership is joint financing. SIDBI will bring its longstanding sector-focused expertise while Bank of Baroda will deploy its extensive domestic network to scale delivery. Together, the two institutions aim to boost working capital availability, speed up credit decisions and enhance access for enterprises seeking timely, reliable funding.

The arrangement will also activate Bank of Baroda’s digital Working Capital Platform for borrowers supported by SIDBI. This integration is designed to reduce delays, improve monitoring and create a more technology-driven credit pipeline for MSMEs.

Beyond traditional enterprise lending, the collaboration extends to the startup economy. SIDBI’s venture debt programmes will be aligned with Bank of Baroda’s dedicated startup banking services, including advisory support and customised credit structures. The institutions intend to jointly back young companies across incubators, innovation hubs and high-potential clusters.

Export-oriented MSMEs and fast-scaling startups will gain additional support through Bank of Baroda’s global presence. The bank’s international reach is expected to provide smoother access to trade finance, cross-border services and market-linkage opportunities.

Bank of Baroda Executive Director Lalit Tyagi noted that the partnership will help the bank strengthen co-lending efforts, expand digital credit enablement and offer differentiated solutions to high-growth enterprises. Both institutions said the alliance will streamline financing processes and expand the flow of formal credit to businesses that form the backbone of employment generation and economic momentum.

The collaboration marks a coordinated effort to modernise enterprise finance, accelerate innovation and widen the runway for MSMEs and startups that continue to drive India’s economic transformation.