The Franchising Association of India ( FAI) the only professionally run and Internationally Recognized Association of all Franchising related interests in India signed an MOU with Small Industries Development Bank of India (SIDBI) to help the process for grant of loans By SIDBI to new and existing entrepreneurs in Franchising.SIDBI is the apex institution for promotion, financing and development of micro, small and medium scale enterprises in the country. Franchising is already a huge (over 5 billion dollars) Industry in India and along with rapid growth of modern retailing and demanding consumer services it is growing at the rate of over 30% per annum. There are already more than 1500 Franchising systems/brands operating in the country employing more than 5 lakh people .With our growing and vast entrepreneurship spirit in the country we have millions of young and educated people looking for business opportunities to be `their own boss’. The proven high rate of success and win -win franchising model fulfills that need. - Both from the Franchisor and the Franchisee point of view. It is in this context that that the SIDBI plan of giving loans for Franchising assumes great importance. With FAI’s growing membership and the data base of potential Franchisees it Will have enormous synergies with SIDBI to help in screening for credibility of the loanees and for speeding up the process of giving loans in the Franchising domain. Speaking on the occasion of signing the MOU between SIDBI and FAI Mr C.Y.Pal, National President of FAI said ` This is going to be a landmark partnership by us with SIDBI as it will provide a big boost to entrepreneurship in the Franchising domain in the country by helping to provide the much needed financial support to a large number of new entrepreneurs wanting to get into Franchising and to the existing brands for expanding their base of business in a fast growing sector of the economy with high success rate based on proven business models.’ Shri S.Muhnot, Chairman, SIDBI mentioned that services sector is contributing more than 60% of the GDP of the country. He added that financing of services sector has been identified as a niche area for financing by SIDBI. He also suggested that considering the requirement of the franchisees, all eligible entrepreneurs should be in a position to avail of the assistance without the need for providing collateral security under the scheme of CGTMSE.