Aug 11- The Government of India has taken many steps to provide hassle-free loans to develop Micro, Small and Medium Enterprises (MSMEs) in the country. Some of them are given below:
i. Priority Sector Lending Guidelines: In terms of Master Direction on ‘Priority Sector Lending (PSL) – Targets and Classification’ dated September 4, 2020, all bank loans to MSMEs conforming to the conditions prescribed therein qualify for classification under Priority Sector Lending.
ii. Collateral requirements of MSME units: Scheduled Commercial Banks (SCBs) have been mandated not to accept collateral security in the case of loans up to ₹10 lakhs extended to units in the Micro & Small Enterprises category. RBI issued circular No. RPCD.SME & NFS. BC. No. 79/06.02.31/2009-10 dated May 6, 2010.
iii. CGTMSE provides credit guarantees to its Member Lending Institutions for loans extended by them to Micro and Small Enterprises without any collateral security and third-party guarantee.
iv. With effect from 01.04.2023, the credit limit for Guarantee Coverage under Credit Guarantee Scheme for Micro & Small Enterprises has been enhanced from ₹ 2 crore to ₹ 5 crore and the annual guarantee fees have been reduced by 50%.
v. Under the revised guidelines of Prime Minister’s Employment Generation Programme (PMEGP) issued on 13.05.2022, the project cost for Manufacturing and Services has been enhanced to Rs. 50.00 Lakh and Rs. 20.00 Lakh, respectively from Rs. 25.00 Lakh and Rs. 10.00 Lakh.
vi. Under Aatmanirbhar Bharat, the Government of India has announced the Self Reliant India Fund to infuse equity in MSMEs which have the potential and viability to grow.
vii. New revised composite criteria of Investment & turnover for classification of MSMEs adopted on 26.06.2020.
viii. No global tenders for procurement up to Rs. 200 crore.
ix. “Udyam Registration” for MSMEs, for Ease of Doing Business w.e.f. 01.07.2020.
x. Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises under the formal ambit for availing the benefits under Priority Sector Lending.
As reported by the Department of Financial Services (DFS), a total number of 2,11,501 loan applications have been received which 1,90,897 loans have been sanctioned to women and SC/ST entrepreneurs in the country under the Stand-Up India Scheme and an amount of Rs. 20,541 crore has been disbursed.Disclaimer: We donot claim that the images used as part of the news published are always owned by us. From time to time, we use images sourced as part of news or any related images or representations. Kindly take a look at our image usage policy on how we select the image that are used as part of the news.