Kolkata, Dec 7 (KNN) In order to find ways to ensure timely credit flow to the SMEs, the Ministry of Micro, Small and Medium Enterprises (MSME) is convening a meeting with the heads of various banks here on Monday.

"I have called a meeting of CMDs of various banks, including State Bank of India, United Bank of India and Canara Bank, on Monday to discuss with them the difficulties they are facing in financing to small units," MSME Minister K H Muniyappa has said.

While speaking on the side-lines of a seminar of the Bengal Chamber of Commerce and Industry here yesterday, he further said that the banks needed to be more liberal in their loans. 
He added although the RBI has guidelines on providing credit to the sector, it should ask banks to be a little liberal in giving loans to the industry as it is paramount to the growth of any small business.


In the Twelfth Five-Year Plan (2012-17), the government raised the budget allocation for the sector to Rs 24,000 crore from Rs 11,000 crore in the last plan period.

According to a recent study jointly done by financial advisory firm Resurgent India and industry chamber Assocham, only about 33 per cent of the country's MSMEs have access to banks or institutional financing channels. (KNN/SD)