Union budget: MSMEs demand inclusion of businesses with less than Rs 5 cr turnover in SCLC subsidy scheme

New Delhi, Jan 27 (KNN) Extension of the Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the Micro Small and Medium Enterprises (MSMEs) to SMEs whose turnover is less than Rs 5 crore is expected by MSMEs in the service sector. 

With the covid-19 pandemic still impacting the economy, government must cater the lending requirements of SMEs with subsidisation of cost of funds to NBFCs that focus on lending to small merchants for loans below Rs 20 lakhs, suggests Mswipe CEO Ketan Patel on Fintech and SME lending sector.

“We also expect the finance minister to increase credit guarantee for lending while also providing relief in terms of tax sops or subsidizing manpower cost for digital players to promote digital payments in tier 3 to 6 towns,” he added.

It will enable them to get access to advance technology and equipment through institutional credit. 

Being called as the backbone of the economy, the MSME sector expects major announcement to support and empower small businesses to accelerate the revival of the economy doomed by the pandemic. 

To keep up with technology, government must provide tax relaxation for companies that provide technology to MSMEs. 

A big push to digitisation is also expected and will be welcomed by the sector provided efficient funding and implementation is provided.