The Clothing Manufacturers Association of India (CMAI) has signed a Memorandum of Understanding (MoU) with Bank of India (BOI) to expand financial inclusion for the MSME-dominated garment sector. The partnership will provide CMAI members with access to collateral-free MSME loans, credit card facilities, and a range of tailored banking benefits.
Shampa Biswas, General Manager of the Government Business Department at Bank of India, said the bank was pleased to collaborate with CMAI and extend its services to more than 6,500 members. She added that the initiative was designed to offer inclusive and customised financial solutions.
Ankur Gadia, Vice President of CMAI, stated that the collaboration was intended to ease financial access for members, 95% of whom operate as MSMEs. He noted that the facilities would help strengthen operations by reducing costs, improving financial security, and supporting employees through enhanced welfare schemes.
The scheme offers manufacturers and traders free cash handling of up to Rs. 20 lakh (US $ 22,550) per day, a complete waiver on RTGS and NEFT charges, complimentary accidental and fire insurance cover, and customised corporate banking solutions. Employees of member organisations will benefit from zero-balance salary accounts, free accidental and disability insurance of up to Rs. 200 lakh (US $ 225,000), education benefits for their children, as well as concessional loans and discounted locker rents.
CMAI confirmed that additional beneficial schemes are under discussion and expected to be finalised soon.
The association said the tie-up with BOI reinforced its role as a catalyst in reducing financial barriers, creating opportunities, and empowering the MSME ecosystem within India’s apparel industry.
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