SIDBI Partners C2treds & UGRO Capital to Facilitate Loans to MSME Sector

Current Context: Small Industries Development Bank of India (SIDBI) has collaborated with C2treds and UGRO Capital to facilitate loans for the MSME (Micro, Small, and Medium Enterprises) sector.

• Here are the key details:
• C2treds Partnership:
• C2treds is a platform that offers MSMEs liquidity within 24 hours through an online bidding process.
• It operates under the Trade Receivables Discounting System (TReDS) initiative, regulated by the Reserve Bank of India (RBI).
• Through this collaboration, C2treds aims to enhance liquidity for MSMEs at competitive interest rates.
• SIDBI’s participation in the C2treds platform will amplify efforts to support the growth of MSMEs, which are vital for employment in India.
• UGRO Capital Partnership:
• UGRO Capital, a datatech NBFC (Non-Banking Financial Company), has established a strategic co-lending partnership with SIDBI.
• This partnership leverages the RBI’s co-lending framework, designed to boost priority sector lending.
• UGRO Capital has already extended bespoke finance solutions to over 78,000 MSMEs in India.

Question:

1 What is the main advantage of the C2treds platform for MSMEs?

• A) Access to long-term loans
• B) Liquidity within 24 hours at competitive interest rates
• C) Equity financing options
• D) Grants for new business ventures

Answer: B) C2treds is a platform that offers MSMEs liquidity within 24 hours through an online bidding process.