Govt asks banks to provide easy loans to SMEs

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SME Times News Bureau | 18 Jun, 2015
Union Minister for MSME (Micro, Small & medium Enterprises), Kalraj Mishra Wednesday stressed on making available easy finance for MSMEs under the Prime Minister's Employment Guarantee Programme (PMEGP).

The Minister held a meeting with Bankers, officials of the Maharashtra Khadi & Village Board and State Industry Department in Mumbai on Wednesday to review the progress.

The Minister said the Banks should avoid delay in sanctioning of loans. "Timely sanction of the projects will result in getting subsidy to the beneficiaries without any hurdle" Mishra observed.

He also said that banks should ensure that maximum benefits of the PMEGP scheme is be given to women, SC/ST and weaker section and unemployed youths in the country.

"All efforts should be made so that scheme should reach the grass root level which will fulfill the dream of "Make in India"of our Prime Minister" he added.

Mishra observed that some instances have come to the notice that despite clear cut guidelines given by RBI, the bankers are insisting to the small beneficiaries for collateral security in case of projects up to Rs.10.00 lakh.

He asked the banks to give clear directions to their respective branches that they should adhere to the RBI guidelines as above so that the small beneficiaries are benefitted.

Prime Minister's Employment Generation Programme (PMEGP), is flagship programme of a Government of India for generating employment opportunities by setting up micro enterprises in the Rural as well as Urban Areas of the Country. The scheme is implemented through field offices of the Khadi & Village Industries Commission, State Khadi & Village Industries Boards and District Industries Centers of the respective State Government.

PMEGP has excelled in its performance during 2014-15 generating employment of 3.57 lakh persons by way of setting up 48,168 micro level entrepreneurial units with the financial assistance extended by the Banks. KVIC extended Rs.1122.54 crore subsidy with the financial support from Ministry of MSME, Government of India.