Modi Govt Sanctions Loans To MSME In 1,33,448 Cases Under 59-Minutes Scheme

Positive India: Delhi:Modi Govt sanctioned loans to MSME in 1,33,448 cases.
Out of 2,00,660 applications submitted, 1,59,583 applications for loans on the psbloansin59minutes.com portal have been accorded in principle approval since the launch of the portal. Sanctions have been made in respect of 1,33,448 cases. Bank wise details of loans accorded in principle approval and sanctioned by banks since launch of the portal as on 17th July, 2019 is given in the Annexure.

Government and RBI have taken several steps to ensure access of credit to MSMEs, which inter-alia, include, advice to all Scheduled Commercial Banks (SCBs) to achieve a 20% year-on-year growth in credit to Micro and Small Enterprises (MSEs), allocation of 60% of the MSEs advances to the micro enterprise accounts, a 10% annual growth in number of micro enterprise accounts, additional working capital limit to meet the requirements arising due to unforeseen/seasonal increase in demand, adoption of one cluster, operationalising at least one specialised MSME Branch in every district, simplified computation of working capital of MSE units to make it minimum 20% of the projected annual turnover of the unit for borrowal limits upto Rs.5 crore, setting up of Trade Receivables Discounting System (TReDS) to solve the problem of delayed payment of MSMEs, etc.

In addition, Government launched a “Support and Outreach Programme for MSMEs” on 2nd November, 2018. The programme, inter-alia, included initiatives for MSMEs on access to credit such as through the psbloansin59minutes portal, access to market, technology upgradation, ease of doing business, social security for MSME sector employees etc.

This was stated by Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Rajya Sabha today.