Vedanta Aluminium, India’s leading aluminium producer, has signed a Memorandum of Understanding (MoU) with the Central Bank of India to extend collateral-free loans to its customers through its subsidiary, BALCO. The partnership aims to support original equipment manufacturers (OEMs), particularly Micro, Small and Medium Enterprises (MSMEs), by offering accessible financing with minimal paperwork and competitive interest rates.
Over 60% of Vedanta Aluminium’s downstream clients are MSMEs. To simplify financing access, the facility will be integrated directly into the Vedanta Metal Bazaar—its digital aluminium marketplace. The platform will support rapid disbursals, digital documentation, automatic lien management, and real-time invoice updates. With more than 100 customers already using financial services via the platform’s partner banks, the addition of Central Bank of India is expected to further enhance access to working capital nationwide.
Loan amounts under the scheme will range from ₹10 lakh to ₹10 crore per customer, based on business performance and BALCO’s recommendation. The loans will come with some of the most competitive rates in the sector, a 90-day repayment window, and a 15-day grace period. This initiative reflects Vedanta’s efforts to strengthen the domestic aluminium supply chain and promote industry self-reliance.
Speaking on the collaboration, Rajiv Kumar, CEO of Vedanta Aluminium, stated, “This partnership improves capital access for MSMEs, who are vital to India’s manufacturing base. It supports scale, efficiency, and competitiveness in the downstream aluminium sector while driving broader economic impact through jobs and industrial growth.”
Vedanta Metal Bazaar, the company’s e-commerce platform, currently lists over 750 product variations including ingots, billets, wire rods, rolled products, and India’s first low-carbon aluminium brand—Restora. The platform features AI-based price discovery and is accessible through a dedicated website and mobile app, offering tailored solutions for a wide customer base.
Vedanta Aluminium produced 2.42 million tonnes of aluminium in FY25—over half of India’s total output—and ranks second globally in the S&P Global Sustainability Assessment 2024 for the aluminium sector. Through this initiative and its broader product ecosystem, the company continues to drive industrial innovation and support India’s clean manufacturing ambitions.
