On Tuesday, the state-run IDBI Bank said that it has signed an agreement with Mudra Bank for the purpose of refinancing of loans given to small enterprises.

The IDBI Bank said in a release, “As per the agreement, the Bank will offer credit facilities up to Rs 10 lakh to micro enterprises, at a competitive interest rate under Pradhan Mantri Mudra Yojana (PMMY) and Mudra will be providing refinance assistance to the bank for eligible sanctioned loan cases”.

The IDBI Bank Executive Director S K V Srinivasan and Mudra Bank CEO Jiji Mammen have signed the agreement on July 1.

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