MSMEs still out of mainstream institutional credit, shows survey
4 months ago

MSMEs still out of mainstream institutional credit, shows survey

Deccan Chronicle  

Hyderabad: In a downturn when tighter monetary conditions affect governments and companies, small and medium sized businesses bear brunt as the resultant delay in bill payments squeezes these enterprises financially. Though several measures were taken by the government and the Reserve Bank of India, micro, small and medium scale enterprises are perennially starved of institutional credit. Though the government has been encouraging MSMEs to graduate to the higher level of efficiency to compete in the global market, the survey revealed that only 36 per cent of them have either applied for capital loans such as term loan or equipment loan. According to the survey, the second largest number of them — 37.5 per cent — have availed loans to address their working capital requirements. The survey shows that 23 per cent of the MSMEs who availed credit had a loan size of Rs 10 lakh and Rs 50 lakh, which hints that the small and medium scale enterprises have got most of the loans.

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History of this topic

Govt open to exploring alternative financing models for MSMEs: Piyush Goyal
2 weeks, 4 days ago

Govt open to exploring alternative financing models for MSMEs: Piyush Goyal

Live Mint  

Commerce and industry minister Piyush Goyal on Thursday said the government is open to offering concessional rates for micro, small, and medium enterprises setting up businesses in industrial townships across the country. Speaking at an event organized by industry body Assocham, Goyal emphasized the government's efforts to simplify business processes, reduce compliance burdens, decriminalize laws, and create a supportive environment …

India: Govt Plans New Financing for MSMEs
2 weeks, 4 days ago

India: Govt Plans New Financing for MSMEs

Deccan Chronicle  

New Delhi: The Modi-led NDA government is open to exploring some alternate financing models for micro, small, and medium enterprises where the concerned ministry can earmark particular areas in the proposed industrial townships for the MSMEs. The statement of the government comes at a time when small business houses in the country are reportedly facing specific issues in accessing bank …

India: MSMEs Need Boost in Credit Access: Assocham
3 weeks, 4 days ago

India: MSMEs Need Boost in Credit Access: Assocham

Deccan Chronicle  

New Delhi: In order to boost credit access for small and medium businesses in the country, India Inc on Thursday called for enhancing the role of banks and other financial institutions to reach them and address their challenges. Leading industry body Assocham in collaboration with Egrow Foundation, conducted an in-depth study on 'MSMEs facing challenges with a quantitative data of …

Nirmala Sitharaman Says MSMEs Will Get Collateral Free Loans Of Up To Rs 100 Crore Via New Credit Model
Trending News
1 month, 1 week ago

Nirmala Sitharaman Says MSMEs Will Get Collateral Free Loans Of Up To Rs 100 Crore Via New Credit Model

ABP News  

Union Finance Minister, Nirmala Sitharaman, on Saturday said that a new credit assessment model by public sector banks will be rolled out soon. This model will help the Ministry of Micro, Small and Medium Enterprises get collateral-free loans of up to Rs 100 crore. Speaking at the National MSME Cluster Outreach Programme in Bengaluru, the FM said that the problems …

Centre to launch collateral-free term loans scheme for MSMEs, says FM Sitharaman
1 month, 2 weeks ago

Centre to launch collateral-free term loans scheme for MSMEs, says FM Sitharaman

Hindustan Times  

New Delhi: The government is all set to launch a collateral-free term loans scheme for micro, small and medium enterprises to boost their manufacturing capabilities, finance minister Nirmala Sitharaman said on Saturday, adding that the scheme will be placed before the Cabinet soon. Introduction of a new credit guarantee scheme will have to go to the Cabinet “sooner” which will …

‘MSMEs took ₹999 cr. from NSIC VC Fund till July’
3 months, 1 week ago

‘MSMEs took ₹999 cr. from NSIC VC Fund till July’

The Hindu  

Micro, small and medium enterprises have taken ₹999 crore investments till July this year from the NSIC Venture Capital Fund, which has a corpus of ₹10,000 crore as ‘mother fund’, according to the National Small Industries Corporation. P. Ravi Kumar, chief general manager of the National Small Industries Corporation, said in Coimbatore on Tuesday that as part of the Self-Reliant …

Budget Opens More Avenues of Credit For MSMEs
4 months, 4 weeks ago

Budget Opens More Avenues of Credit For MSMEs

Deccan Chronicle  

Chennai: Realising their potential in job creation, the Budget has formulated a package for MSMEs providing credit guarantees, new assessment criteria, and support during times of stress to spur growth and improve their competitiveness. The government has proposed a Credit Guarantee Scheme for MSMEs in the manufacturing sector, which will facilitate term loans to MSMEs for the purchase of machinery …

MSME data will help policy-making, finds economic survey
5 months ago

MSME data will help policy-making, finds economic survey

Deccan Chronicle  

Chennai: Improving the availability of data regarding the health of MSMEs will help policy-making, finds the Economic Survey. Updated IIP, production and employment data of MSMEs, information on credit disbursement, and industry-wise financial flows are some of them. Further, there should be information on industry-wise gross disbursement of bank credit as opposed to the data on outstanding credit currently available, …

MSMEs continue to face challenges in formalisation and accessing credit: Economic Survey
5 months ago

MSMEs continue to face challenges in formalisation and accessing credit: Economic Survey

The Hindu  

The Micro, Small and Medium-scale Enterprises face challenges, including issues with formalisation and inclusion, limited access to finance, markets, technology, and digitalisation, infrastructural bottlenecks, and skilling, according to the Economic Survey. “In the future, the development of new technologies, such as the Open Credit Enablement Network are expected to boost credit flow to the MSME sector, it mentioned in the …

Loan Ticket Size of MSMEs Rise After Pandemic
10 months, 2 weeks ago

Loan Ticket Size of MSMEs Rise After Pandemic

Deccan Chronicle  

Chennai: Post-Covid, the ticket size of loans by lenders to MSMEs has increased while approval rates have fallen. The average ticket size of loans offered by public sector banks has risen from Rs 12.6 lakh to Rs 15.1 lakh between Q2, 2022 to Q4, 2023. Approval rates in PSU banks for medium-risk companies are down from 58 per cent in …

Finance Ministry’s Latest Report Highlights 8% Industrial Growth Trajectory Fuelled by Make in India, PLI & MSMEs
10 months, 3 weeks ago

Finance Ministry’s Latest Report Highlights 8% Industrial Growth Trajectory Fuelled by Make in India, PLI & MSMEs

News 18  

The recently released ‘The Indian Economy – A Review’ by the Department of Economic Affairs, Finance Ministry, has revealed a notable surge in industrial growth, showcasing a likely 8% per annum growth trajectory for the triennium ending March 2024. The report attributes this growth to strategic government initiatives, particularly emphasizing the success of ‘Make in India’, the Production-Linked Incentive scheme, …

The Need to Bolster Institutional Low-Cost Credit to MSMEs
10 months, 3 weeks ago

The Need to Bolster Institutional Low-Cost Credit to MSMEs

News 18  

The Micro, Small and Medium Enterprises are critical to unlocking the potential of India envisioned under the ‘Make in India’ campaign. The Parliamentary Standing Committee on Finance, in its report titled ‘Strengthening Credit Flows to the MSME Sector’, exposes the fact that less than 40 per cent of MSMEs avail credit from formal financial systems, and therefore depend on costly …

Over 7 lakh youth to get jobs through PM, CM internship programmes in UP: Yogi Adityanath
1 year, 5 months ago

Over 7 lakh youth to get jobs through PM, CM internship programmes in UP: Yogi Adityanath

India TV News  

The Uttar Pradesh Chief Minister Yogi Adityanath said on June 28, that the state's MSME businesses provide a source of income for millions of people and that they will help in providing jobs to more than seven lakh youth through the state's PM and CM Internship Programmes. CM Yogi also directed officials to take forward efforts for setting up Unity …

MSMEs not static, but growing in size, asserts Finance Ministry
1 year, 8 months ago

MSMEs not static, but growing in size, asserts Finance Ministry

The Hindu  

The Finance Ministry has sought to dismiss the “narrative” that India’s micro, small and medium enterprises are stagnating, citing data that it asserts shows smaller firms evolving into larger units in recent years. In its recent monthly economic review for February, the ministry had said the number of micro units graduating to small units had increased to 65,140 in 2022-23, …

MSMEs banking high on AP’s New Industrial Policy
1 year, 9 months ago

MSMEs banking high on AP’s New Industrial Policy

Deccan Chronicle  

Vijayawada: The Micro, small and medium enterprises are having high expectations from Andhra Pradesh government’s New Industrial Policy, which is likely to be announced during the ensuing Global Investors Summit. Coinciding with this, MSMEs are urging the state government to set up industrial clusters over 100–1,000 acres in areas of the state that have good transport connectivity and provision of …

Banks May See Rise In Bad Loans From Retail, Small Businesses, Says SBI Official Ashwini Kumar Tiwari
1 year, 10 months ago

Banks May See Rise In Bad Loans From Retail, Small Businesses, Says SBI Official Ashwini Kumar Tiwari

ABP News  

Banks in India could see a rise in bad loans or non-performing assets in the retail and small business segments from its recent low levels, an official with State Bank of India told news agency Reuters on Thursday. At an event in Mumbai, Ashwini Kumar Tiwari, managing director at State Bank of India said, "We cannot have a system where …

Sitharaman to meet heads of banks on Feb 22; on credit scheme for MSMEs: Report
1 year, 10 months ago

Sitharaman to meet heads of banks on Feb 22; on credit scheme for MSMEs: Report

Hindustan Times  

The finance ministry has called a meeting of heads of public sector banks and top four private sector lenders to review the progress of the emergency credit line guarantee scheme to help businesses affected by COVID-19. ECLGS was announced as part of the Atmanirbhar Bharat Package in May 2020 with the objective to help businesses including MSMEs to meet their …

Micro enterprises want govt to constitute a dedicated ministry
1 year, 10 months ago

Micro enterprises want govt to constitute a dedicated ministry

Deccan Chronicle  

Chennai: Micro enterprises, which dominate the MSME space in terms of numbers, have asked the government to constitute a separate ministry for them in order to get better focus and support. In the Mega MSME Survey conducted by the Consortium of Indian Associations and participated by 1,08,500 enterprises, 44 percent were micro-enterprises or those below Rs 1 crore annual turnover. …

MSMEs in Coimbatore demand measures to increase fund availability
1 year, 10 months ago

MSMEs in Coimbatore demand measures to increase fund availability

The Hindu  

Industries, mainly the Micro, Small and Medium-Scale Enterprises in Coimbatore district, have appealed to the Union government for measures that will give financial boost as markets have slowed down and fund availability for the units has taken a hit. President of Indian Chamber of Commerce and Industry, Coimbatore, B. Sriramulu said that since the export markets are facing a slowdown, …

Federal Bank: Redefining banking digitally and sustainably
1 year, 10 months ago

Federal Bank: Redefining banking digitally and sustainably

Live Mint  

Federal Bank is one of the leading and preferred Personal, NRI and business banking partners for customers across India. Strong momentum in credit growth SME book grew by 20% YoY Retail book up by 18% YoY Business banking book up by 18% YoY Corporate book up by 19% YoY Commercial credit book grew by 18% YoY CV/CE business grew by …

Cabinet approves Rs12,882 crore for continuation of development schemes in Northeast
1 year, 11 months ago

Cabinet approves Rs12,882 crore for continuation of development schemes in Northeast

Live Mint  

The Union Cabinet has approved continuation of schemes of Ministry of Development of North Eastern Region with an outlay of ₹12,882 crore, for the balance period of the 15th Finance Commission. Based on the Expenditure Finance Committee recommendations, the outlay for the North East Special Infrastructure Scheme will be ₹8,139.5 crore including committed liabilities of ongoing projects. The MDoNER Schemes …

How do MSMEs hold the key to defining India into becoming a $5 trillion economy?
2 years ago

How do MSMEs hold the key to defining India into becoming a $5 trillion economy?

Live Mint  

Now that the world has emerged from the shadow of the Covid-19 pandemic, it is interesting to note how efficiently the economy at large is recovering from the various setbacks it presented. Extending government support In order to help MSMEs tide over the immediate setback they suffered in the wake of the pandemic, the government extended various relief measures to …

Govt taking steps to make Indian MSMEs stronger, globally competitive: Minister
2 years ago

Govt taking steps to make Indian MSMEs stronger, globally competitive: Minister

India TV News  

Delhi: Micro, small and medium enterprises are among the most important pillars of India's economy and the government is working to make the sector stronger and more developed, Minister of State for MSME Bhanu Pratap Singh Verma said on Monday. "We will also work to ensure that interrelationship between the MSME sector and other important pillars of the Indian economy …

Credit to MSMEs gathers pace, but needs a tech push
2 years, 2 months ago

Credit to MSMEs gathers pace, but needs a tech push

Live Mint  

Bank credit to micro, small and medium enterprises has fluctuated for most of the pandemic. Traditionally, public sector banks led credit disbursement to MSMEs, with a 50% share prior to 2019. iPhone sales in India headed for another record IT companies likely to slash campus hiring in FY24 What lies next for India’s shaky exports story Marico’s Q2 update fails …

49,608 MSMEs registered in State: Minister
2 years, 3 months ago

49,608 MSMEs registered in State: Minister

The Hindu  

As many as 49,608 micro, small, and medium enterprises have registered in the State till Wednesday, Minister for Industries P. Rajeeve has said. Replying during Question Hour in the Assembly on Wednesday, the Minister said the year 2022-23 was being observed as the ‘Year of Entrepreneurship,’ and the target was to start one lakh MSMEs this financial year. “As part …

MSME sector records credit growth of 14% in 2022-23, says SBI Research report
2 years, 4 months ago

MSME sector records credit growth of 14% in 2022-23, says SBI Research report

Firstpost  

SBI Research said in its weekly report ‘Ecowrap’ that the sector has expanded by Rs 52,800 crore against degrowth of Rs 61,000 crore during the similar period of the previous year New Delhi: Credit growth to the Ministry of Micro, Small & Medium Enterprises sector has expanded by Rs 52,800 crore in the current financial 2022-23 year against degrowth of …

42,699 MSMEs registered in first four months of current fiscal
2 years, 5 months ago

42,699 MSMEs registered in first four months of current fiscal

The Hindu  

As many as 42,699 micro, small and medium enterprises registered in the State in the first four months of the current fiscal, Minister for Industries P. Rajeeve said. This has helped create 92,855 employment opportunities, Mr. Rajeeve said launching a State-level loan scheme for entrepreneurs formulated by the State Level Bankers' Committee in association with the State government. The State …

Innovations can plug the growth capital gap of MSMEs
2 years, 5 months ago

Innovations can plug the growth capital gap of MSMEs

Live Mint  

India has over 7.9 million micro, small and medium enterprises, as of 27 March 2022, as reported by the MSME Ministry. The credit gap translates into a ‘growth capital gap’, especially for innovative and high-growth MSMEs seeking a radical pivot in their business models or overseas expansion. While RBI will need to make it mandatory for all MSMEs and large …

Guideline to help MSMEs stay afloat
2 years, 6 months ago

Guideline to help MSMEs stay afloat

China Daily  

SHI YU/CHINA DAILY New measures to lower taxes, increase financing for companies struggling due to COVID-19 outbreaks China is beefing up support for micro, small and medium-sized enterprises by enacting measures to alleviate the financial burden brought on by outbreaks of COVID-19. Their comments were made after the Ministry of Industry and Information Technology unveiled a guideline on May 13 …

Guideline to help MSMEs stay afloat
2 years, 6 months ago

Guideline to help MSMEs stay afloat

China Daily  

SHI YU/CHINA DAILY New measures to lower taxes, increase financing for companies struggling due to COVID-19 outbreaks China is beefing up support for micro, small and medium-sized enterprises by enacting measures to alleviate the financial burden brought on by outbreaks of COVID-19. Their comments were made after the Ministry of Industry and Information Technology unveiled a guideline on May 13 …

World MSME Day: 5 Govt-Backed Loan Schemes for SMEs, MSEMs in India
3 years, 5 months ago

World MSME Day: 5 Govt-Backed Loan Schemes for SMEs, MSEMs in India

News 18  

The small-scale business sector, also known as Small and Medium Enterprises sector, contributes around 40% to the total GDP of India. Here are the schemes offered by the government – MSME government business loan scheme – The Government of India launched this scheme as a working capital loan, and an MSME can get a loan sanctioned of Rs. MUDRA business …

RBI Loan Restructuring of up to Rs 50 Cr for MSMEs: Eligibility, Other Criteria
3 years, 6 months ago

RBI Loan Restructuring of up to Rs 50 Cr for MSMEs: Eligibility, Other Criteria

News 18  

In a bid to provide relief amid the second wave of COVID-19 pandemic, Reserve Bank of India announced doubling of loan restructuring limits for micro, small and medium enterprises and small borrowers to Rs 50 crore. “With a view to enabling a larger set of borrowers to avail of the benefits under Resolution Framework 2.0, it has been decided to …

Women run fewer than 13% of India's MSMEs; inaccessibility of credit, govt schemes and now COVID are key hurdles
3 years, 9 months ago

Women run fewer than 13% of India's MSMEs; inaccessibility of credit, govt schemes and now COVID are key hurdles

Firstpost  

The biggest challenge faced by women entrepreneurs in India is gender bias in access to finance as studies show that their loan applications are more likely to be delayed or rejected as compared to men Editor’s Note: In this two-part series, Indiaspend explores the factors that inhibit women’s participation in businesses. Globally, India ranks third among countries reporting gender gaps …

India's pvt credit-to-GDP ratio lowest among peers; govt working on framework: NITI Aayog CEO
4 years ago

India's pvt credit-to-GDP ratio lowest among peers; govt working on framework: NITI Aayog CEO

India TV News  

Niti Aayog CEO Amitabh Kant on Saturday said India's private credit-to-GDP ratio is the lowest among its global peers and the government is in the process of putting in place a framework for a credit push towards untapped segments. Addressing a virtual event organised by the Global Alliance for Mass Entrepreneurship, Kant said credit scenario in India in recent years …

3.16 cr MSMEs registered in India between July 2020 and Dec 4, 2023: Govt to Rajya Sabha
4 years, 2 months ago

3.16 cr MSMEs registered in India between July 2020 and Dec 4, 2023: Govt to Rajya Sabha

ANI News  

New Delhi, December 11 : A total of 3,16,05,581 Micro Small and Medium Enterprises were registered in India between July 1, 2020, and December 4, 2023, the Central government told the Rajya Sabha on Monday. In response to the query of Independent MP Kartikeya Sharma, the Minister further said the total number of women-owned MSMEs registered from July 1, 2020, …

India’s micro firms face a credit squeeze
4 years, 2 months ago

India’s micro firms face a credit squeeze

Live Mint  

Amid the farm sector debate, a recent notification by the government of India on the Micro Small and Medium Enterprises went largely unnoticed. Based on the investment criteria, what used to be the upper end in the definition of a medium enterprise—a firm with an investment of ₹100 million —is now defined as a small enterprise. Given the preponderance of …

Banks' NPAs in Large Industry, Services Fall 31 per cent in Over Two Years to Rs 4.36 Lakh Crore
4 years, 3 months ago

Banks' NPAs in Large Industry, Services Fall 31 per cent in Over Two Years to Rs 4.36 Lakh Crore

News 18  

Banks' non-performing assets in large industry and services declined 31 per cent in over two years to about Rs 4.36 lakh crore in June this year, Parliament was informed on Monday. "As per Reserve Bank of India data on domestic operations, NPAs of scheduled commercial banks pertaining to large industry and services have come down to Rs 4,36,492 crore as …

Credit guarantee extended to larger firms, self-employed
4 years, 4 months ago

Credit guarantee extended to larger firms, self-employed

The Hindu  

The Centre has expanded its credit guarantee scheme for micro, small and medium enterprises to cover loans given to larger firms, as well as to self-employed people and professionals who have taken loans for business purposes, Finance Minister Nirmala Sitharaman said on Saturday. ₹87,000 crore disbursed So far, banks have approved ₹1.36 lakh crore worth of loans to 40 lakh …

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