In a move set to propel India's downstream aluminium industry, Vedanta Aluminium, in collaboration with its subsidiary BALCO, has signed an MoU with the Central Bank of India. The deal announced on June 6, 2025, aims at introducing a collateral-free facility of financing to the company's customers directly.
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Image source: Vedanta MetalBazaar
From end-user MSMEs to large OEMs, all stakeholders will be able to avail themselves of easy, cost-effective finance through the rapidly growing Vedanta Metal Bazaar platform. This is going to prove as a game-changer, especially for the smaller players in the value chain.
Unlocking new avenues for customers
It's all about creating growth with comfort and ease. Loans will range from INR 10 lakh (USD 11,694) to INR 10 crore (USD 11.7 million), with the possibility of going even higher based on a customer's turnover, tenure, and word of mouth from BALCO.
What really stands out is the customer-centric methodology: a standard 90-day repayment term, generously accompanied by an additional 15-day grace period. This thoughtful add-on is a nod to cash flow requirements of MSMEs in real life, providing them with much-needed relief.
Synthesising digital efficiency and convenient finance
All the funding, from initial application and speedy disbursement to invoice tracking, will be heavily embedded through API into the Vedanta Metal Bazaar platform, requiring minimal paperwork and ensuring ready access to working capital. That's the streamlined, fully digital experience Vedanta is striving to deliver, removing traditional barriers that otherwise bog down business.
The acquisition of the Central Bank of India, which is well spread across the country, lends huge weightage to Vedanta's already very strong financial structure. With MSMEs accounting for over 60 per cent of Vedanta Aluminium's downstream consumers alone, this new partnership is well-set to strengthen its core consumers.
By offering what is advertised as one of the best interest rates in the industry, BALCO and the Central Bank of India will considerably enhance the working capital availability. This action also perfectly aligns with Vedanta's overall sustainability vision, reasserting its commitment to build an inclusive and very effective aluminium value chain.
Since Vedanta Aluminium's FY24production of nearly 2.37 million tonnes accounts for more than half of India's total production, it would become India's first preference supplier following this move. This also aligns with overall government policies of digital and collateral-free lending to MSMEs, reflecting Vedanta's vision. They are essentially investing in the future development and robustness of India's industrial economy.
Also read: Vedanta’s ‘green aluminium plant location’ almost ready for reveal ahead of demerger commissioning
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