Udyami Mitra Portal advised to meet 7.5 per cent ANBC target for Micro enterprises: Giriraj Singh
New Delhi, Dec 28 (KNN) Eyeing at ensuring smooth credit to the Micro, Small and Medium Enterprises (MSMEs) in the country, Small Industries Development Bank of India’s (SIDBI) portal Udyami Mitra has been advised to meet the target of 7.5 per cent of Adjusted Net Bank Credit (ANBC) for micro enterprises.
MSME Minister Giriraj Singh gave the following information in Rajya Sabha.
The Minister said that the Udyami Mitra portal was launched by SIDBI to improve accessibility of credit. Also it is to prove instrumental towards providing handholding services to MSMEs.
Singh informed that the Scheduled Commercial Banks (SCBs) have been advised to ensure a target of 7.5 per cent of Adjusted Net Bank Credit (ANBC) for Micro Enterprises, that collateral security is not required for loans up to Rs. 10 lakh to MSE sector, a simplified working capital requirement for MSEs.
Earlier, Talking to KNN, Sunil Vaish, President of MSME body Indian Industries Association (IIA) said that the actual situation on ground is very different from what the government projects, especially when it comes to the MSME sector and financing.
Vaish informed that despite several initiatives taken by the government, credit flow for the MSMEs is far from reality.
Responding to initiative of SIDBI’s new portal, Vaish said that while the portal does open new prospects for the sector, the results it is to yield in time to come would give a better understanding of the functioning of the portal. (With PIB Inputs) (KNN/DA)