Government of India has made the loan taking process for micro, small and medium scale enterprises (MSME) easy and accessible.

Due to Government’s positive outlook towards MSMEs, there has been a substantial increase in the amount of loans taken by small ventures from public banks, Minister of State for Finance Anurag Thakur said in Rajya Sabha on Tuesday. According to the reports of RBI, the loan amount lend by public banks to MSMEs has increased from Rs 8,20,548 in March 2016 to Rs 8,81,170 in March 2019.

On being asked by RS member Mahesh Poddar, Thakur also said that the government and RBI have undertaken multiple steps to make this happen. All the banks were instructed to increase the annual rate of loans to MSME by 20 per cent. Apart from this, they were instructed to allocate 60 per cent of MSME loans to the micro ventures and provided an increase of 10 per cent every year.

Every district is opening up a specialised MSME branch. To enhance number of MSMEs to Rs. 5 crores, its capital amount is to be made 201 per cent of its annual turnover. To address the problem of late payment to MSM, Trade Receivable Discount System (TRDS) has been established.

Help and support contact programme for MSMEs have been started from 2nd November, 2018. In this programme, apart from other things, through the medium of MSME’s portal- psbloansin59minutes , the process of loan, market reach, technical upgrade, feasibility of the business, social security for MSME’s workers are provided.

Published On : 23-07-2019

Source : Daily Pioneer