IREDA Paves the Way for MSMEs in Renewable Energy with Accessible Loans and Lower Interest Rates

ENA Sectors 2023-12-11 13:57:07 Dubai, Dec 11 (KNN) Indian Renewable Energy Development Agency Limited (IREDA)'s Chairman & Managing Director, Pradip Kumar Das has emphasised the importance of supporting Micro, Small & Medium Enterprises (MSMEs) in the Renewable Energy sector for both economic and environmental benefits. Speaking at a session on Pioneering Sustainability in MSMEs: Envisioning Global Growth and Local Impact organized by the International Solar Alliance and CII, as part of COP 28 in Dubai on Sunday, he reaffirmed IREDA's commitment to environmental sustainability by enhancing MSME participation through accessible loan facilities. CMD, IREDA acknowledged that a significant obstacle for MSME entrepreneurs is securing loans at reasonable interest rates. However, IREDA has made substantial progress in improving the Ease of Doing Business. This includes the implementation of faceless loan sanctions and disbursements, reduction in the documentation involved in loan sanction and disbursement cycle, as well as an expansion of geographical reach across the country. Highlighting a successful case study involving lending to e-rickshaws through Mufin Green Finance, IREDAs Chairman intervened to lower existing interest rates ranging from 30% -36% to 18%. Leveraging its track record of making previously unbankable sectors bankable, he expressed confidence that companys initiatives would result in increased MSME participation in the green energy sector. The CMD also underscored IREDA's unwavering commitment to encouraging farmers nationwide to reduce their carbon footprint through financing under the PM-KUSUM scheme. In a proactive move to boost MSMEs and contribute to the success of the PM-KUSUM scheme, IREDA recently launched its Retail Division. Soon after its establishment, Retail Division sanctioned its first loan, amounting to Rs. 58 crores under KUSUM-B. IREDA is dedicated to continuously addressing the challenges faced by MSMEs and is actively working towards enhancing their participation in the Renewable Energy sector. The CMD also underlined that Agriculture Sector and MSMEs are the largest contributors in GDP Growth. He stressed the pivotal role that MSMEs play in environmental sustainability and informed that MSMEs currently constitute approximately 2% of the company's total loan assets in FY 22. (KNN Bureau) 35848 https://knnindia.co.in/news/newsdetails/sectors/ireda-paves-the-way-for-msmes-in-renewable-energy-with-accessible-loans-and-lower-interest-rates 2023-12-11 13:57:07 knnindia.co.in IREDA Paves the Way for MSMEs in Renewable Energy with Accessible Loans and Lower Interest Rates