MSME Ministry bats for loan at base interest rates to SMEs from PSBs
Updated: Oct 07, 2014 12:53:42pm
New Delhi, Oct 7 (KNN) In order to improve financial inclusion in the micro, small and medium enterprises (MSME) sector in the country, the MSME Ministry is working towards ensuring that the micro and small units get loans from the Public Sector Banks at the base interest rate.
According to a media report, Union MSME Minister, Kalraj Mishra met senior officials of banking and financial institutions for early decision on the matter, which would be duly endorsed subsequently by the Reserve Bank of India, the finance ministry and the Prime Minister's Office (PMO).
MSMEs across the country need capital at relaxed rates of interest to run their enterprises and cater to the needs of their larger counterparts as well as contribute substantially to India's manufacturing and external engagements, according to Mishra.
After meeting the industry representatives last month, he said that it was agreed that the MSME ministry would work towards ensuring that a base rate interest regime would be facilitated for small and tiny enterprises.
According to Mishra, the concerns of the SMEs have been forwarded to the PMO.
He also emphasised the need for focus on rural entrepreneurs, adding that his ministry has been working towards the setting up of Credit Guarantee Trust Funds to extend liberal packages to MSMEs. He said that a provision for this has been incorporated in the new draft MSME Policy.
The state governments have also been urged to contribute to the scheme and help promote the MSME sector, said the Minister, adding, "If you provide Rs 100 crore for this, a collateral-free loan of Rs 1,000 crore will be offered for promotion of MSME under the Credit Guarantee Fund Scheme." (KNN/SD)
According to a media report, Union MSME Minister, Kalraj Mishra met senior officials of banking and financial institutions for early decision on the matter, which would be duly endorsed subsequently by the Reserve Bank of India, the finance ministry and the Prime Minister's Office (PMO).
MSMEs across the country need capital at relaxed rates of interest to run their enterprises and cater to the needs of their larger counterparts as well as contribute substantially to India's manufacturing and external engagements, according to Mishra.
After meeting the industry representatives last month, he said that it was agreed that the MSME ministry would work towards ensuring that a base rate interest regime would be facilitated for small and tiny enterprises.
According to Mishra, the concerns of the SMEs have been forwarded to the PMO.
He also emphasised the need for focus on rural entrepreneurs, adding that his ministry has been working towards the setting up of Credit Guarantee Trust Funds to extend liberal packages to MSMEs. He said that a provision for this has been incorporated in the new draft MSME Policy.
The state governments have also been urged to contribute to the scheme and help promote the MSME sector, said the Minister, adding, "If you provide Rs 100 crore for this, a collateral-free loan of Rs 1,000 crore will be offered for promotion of MSME under the Credit Guarantee Fund Scheme." (KNN/SD)
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