Credit to MSMEs goes up but numbers decline

Gujarat Global News Network, Ahmedabad

Micro, Small and Medium Enterprises (MSMEs) in Gujarat availed more credit by Scheduled Commercial Banks (SCBs) in FY 2017-18. As per data the outstanding credit is Rs. 60,153 crore as against Rs.55,245 crore in FY 2016-17. But the number of MSME accounts availing credit facility from the SCBs went down from 4.41 lakh in 2016-17 to 4.19 lakh in 2017-18 in Gujarat.

This information was given by Minister of Finance Nirmala Sitharaman in Rajya Sabha while replying to questions raised by MP Parimal Nathwani. He wanted to know about the constrains faced by MSMEs in accessing credit facilities from institutional sources, the credit disbursed to MSMEs during the last three years and whether the banks are charging higher interest rates to MSMEs and if certain banks do not pass on the interest rate cuts to the MSME sector.

The minister’s statement also said that Government has received complaints / representations from time to time from MSMEs regarding constraints in accessing credit from institutional sources. Like insistence on collateral, delayed sanctioning of credit, sanction of lower loan amount as against the required amount, charging of higher rate of interest, etc.

The minister said that the various steps have been taken by Reserve Bank of India (RBI) and Government to ensure access of credit to MSMEs.

For news in Hindi see our Hindi daily Chaupal Chronicle

 

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