KVGB to disburse Rs 1000cr to MSMEs by Dec

New Delhi, June 17 (KNN) Karnataka Vikas Grameena Bank (KVGB), a Regional Rural Bank sponsored by Syndicate Bank, plans to disburse ₹1,000 crore to micro, small and medium enterprises (MSME) sector by December to solve the problem of reduced lending to this sector. This indeed is a major breakthrough in providing easy credit to MSMEs.

Talking to KNN on this development, S.Ravindran, Chairman, KVGB said,

“This initiative is being made possible by the collaboration of 611 branches of KVGB in 93 districts of Karnataka where credit would reach not only to major MSMEs in urban areas but also in rural areas. “

“Potential in rural areas for lending is high and we seek to tap that potential. Moreover, we intend to provide credit not only in manufacturing and service sector MSMEs but also budding entrepreneurs who need credit for their start-ups," he added further.

When asked about the motive behind this scheme, he said,

“ MSMEs are having poor knowledge and low awareness regarding Grameen banks and their objective to provide easy and cheap credit. We also want to direct these funds to enterprises for their R&D, strengthening their infrastructure and expansion of operations so that it generates more employment.”

He also highlighted challenges they face, “ Many micro-finance institutions are at work and provide credit to MSMEs. But this initiative would give us a competitive edge over others. We are also working on increasing awareness regarding this schemes.”

When asked about the initiatives to increase awareness, he added. “ We at KVGB, are constantly providing training to our employees and other staff. We provide full- fledged training both on-the job and off-the-job, quarterly and even monthly, to meet the growing skill demand of our bank.” He concluded. (KNN/TL)