NSIC to sign pact with SBI for easy credit to SMEs
Updated: Jul 01, 2013 01:26:56pm
New Delhi, Jul 1 (KNN) The National Small Industries Corporation (NSIC) is likely to sign a pact with State Bank of India (SBI) for providing affordable and easy credit to small-and- medium-sized units.
"The talks to sign the agreement with SBI are in final stage. Now, any day we would sign it (the pact)," said a media report quoting NSIC Chairman-cum-Managing Director H P Kumar.
Presently, NSIC has such pacts with YES Bank, HSBC, Axis Bank, Union Bank of India and Central Bank of India.
More and more banks according to Kumar are willing to sign similar pacts as they want MSMEs to be their customers.
Also, the MSME Ministry is in discussions with various banks in order to encourage them to improve flow of credit to the small sector, according to a media report.
Further, in order to ensure enhanced credit flow, the Prime Minister's Task Force on MSMEs had strictly recommended that the government should ensure strict adherence to the stipulated targets by the commercial banks for micro enterprises (viz. 20 per cent year-on-year growth for micro and small enterprises lending with 60 per cent apportionment for micro sector).
Most MSMEs face difficulties in assessing credit easily as they fail to fulfil collateral requirements.
Given that most of these units still face problems in getting easy access to finance, NSIC has been helping units in getting credit ratings from firms like CRISIL and FITCH, Kumar said.
The ratings help them in getting loans at concessional rates.
Moreover, in the 2013-14 fiscal, NSIC would assist over 20,000 MSMEs to get ratings.
Credit facilitation by NSIC during the year 2011-12 to MSMEs increased to Rs 3824 crore from Rs 2349 crore in the previous year, registering a growth of 63 per cent. The Corporation has tie-up arrangements with 16 banks for providing credit facilitation to the MSME sector. (KNN)
"The talks to sign the agreement with SBI are in final stage. Now, any day we would sign it (the pact)," said a media report quoting NSIC Chairman-cum-Managing Director H P Kumar.
Presently, NSIC has such pacts with YES Bank, HSBC, Axis Bank, Union Bank of India and Central Bank of India.
More and more banks according to Kumar are willing to sign similar pacts as they want MSMEs to be their customers.
Also, the MSME Ministry is in discussions with various banks in order to encourage them to improve flow of credit to the small sector, according to a media report.
Further, in order to ensure enhanced credit flow, the Prime Minister's Task Force on MSMEs had strictly recommended that the government should ensure strict adherence to the stipulated targets by the commercial banks for micro enterprises (viz. 20 per cent year-on-year growth for micro and small enterprises lending with 60 per cent apportionment for micro sector).
Most MSMEs face difficulties in assessing credit easily as they fail to fulfil collateral requirements.
Given that most of these units still face problems in getting easy access to finance, NSIC has been helping units in getting credit ratings from firms like CRISIL and FITCH, Kumar said.
The ratings help them in getting loans at concessional rates.
Moreover, in the 2013-14 fiscal, NSIC would assist over 20,000 MSMEs to get ratings.
Credit facilitation by NSIC during the year 2011-12 to MSMEs increased to Rs 3824 crore from Rs 2349 crore in the previous year, registering a growth of 63 per cent. The Corporation has tie-up arrangements with 16 banks for providing credit facilitation to the MSME sector. (KNN)
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