New Delhi, Jan 30 (KNN) The flow of credit to the Micro, Small and Medium Enterprises (MSMEs) continue to remain a concern, hampering the expansion and growth of the sector, the Economic Survey revealed.

According to the survey report tabled in the Parliament by Finance Minister Arun Jaitley, MSMEs were able to grab only 17.4 per cent of the total credit outstanding.

Citing figures, the report said that the growth of credit to the micro and small enterprises moved up by a 4.6 per cent figure whereas credit to medium enterprises decreased by 8.3 per cent.

Earlier, talking to KNN, Sunil Vaish, President of MSME body, Indian Industries Association (IIA) expressed problems of the sector along similar lines.

Vaish said that the credit crunch to the MSMEs have started to become the new normal and the banks are not at all open to help the micro, small and medium enterprises.

“The banks are not very open to credit the MSMEs, while the government has instructed the banks to make sure steady credit for the sector, it is not very much being implemented”, Vaish said.

Explaining the concern further, Vaish said that the MSMEs are usually a one man show and it is not possible for the entrepreneur to have very bright balance sheets and trade ratio, as a result the banks don’t entertain the MSMEs.

Whereas for a large enterprise, they have dedicated team in place to look after it. (KNN/DA)