Finance Ministry urges PSBs to handhold SMEs, industry say credit still a concern
New Delhi, Dec 8 (KNN) Finance Ministry in a fresh appeal, has asked the Public Sector Banks (PSBs) to come up with packages to handhold the Micro, Small and Medium Enterprises (MSMEs) , news agencies reported, however the problem of credit continue to be a night mare for the sector, Indian Industries Association (IIA) informed.
Earlier last year, Finance Minister during an interaction with banks said that the banks must consider support to the MSMEs since the sector contributes significantly towards economy as well as generates a fair share of employment.
Talking to KNN, Sunil Vaish, President of MSME Body, Indian Industries Association (IIA) informed that the lack of credit is one of the main factors haunting the growth of the MSMEs in the country.
“The financial institutions are apprehensive when it comes to MSME financing. Despite government’s instructions, the sector is still undernourished with credit”, Vaish said.
Also during the winter session, Shiv Pratap Shukla, Minister of State for Finance informed Lok Sabha that positive steps are being taken towards ensuring credit to the MSMEs. (KNN/DA)