Relaxing Lending Norms to MSMEs
RBI
steps up to ensure
Access
of credit to MSMEs!
An
online lending portal www.psbloansin59minutes.com with majority ownership of 6 Public Sector
Banks (PSBs)/ Financial Institutions (FIs) along with their associated
companies, has been launched which facilitates in principle approval for loans
to Micro Small and Medium Enterprises (MSMEs) upto Rs.1 crore within 59 minutes
from PSBs.
Key
features of the portal, inter-alia include enabling borrowers to connect with
multiple banks without visiting the branch, financial technology (FinTech)
based architecture with high level of information security, analysis of data
from various data points, loan products in line with scoring models and
assessment methods within approved credit policies, prima facie eligibility
check for credit guarantee from CGTMSE (Credit Guarantee Fund Trust for Micro
and Small Enterprises), etc.
Government
and Reserve Bank of India (RBI) have taken several steps to ensure access of
credit to MSMEs. These 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.
Loans
to MSMEs are extended by individual banks on commercial basis as per their
Board approved loan policy and extant RBI guidelines in this regard.
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