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Giriraj Singh urges banks to extend collateral free credit to MSMEs

The Minister said that since the government had increased the extent of collateral free credit upto Rs 2 crore to trading establishments in the country, the number of beneficiaries has crossed 18 lakh.

twitter-logo PTI   New Delhi     Last Updated: February 25, 2019  | 20:54 IST
Giriraj Singh urges banks to extend collateral free credit to MSMEs
Giriraj Singh on Monday urged banks to extend collateral free credit to MSMEs to create entrepreneurs who will then be able to generate greater employment opportunities.

Union Minister for MSME Giriraj Singh on Monday urged banks to extend collateral free credit to MSMEs to create entrepreneurs who will then be able to generate greater employment opportunities.

The minister said that since the government had increased the extent of collateral free credit upto Rs 2 crore to trading establishments in the country, the number of beneficiaries has crossed 18 lakh.

"Banks need to ensure that they provide need-based finances to the small entrepreneurs. As government have already increased the credit limit for collateral free lending to Rs 2 crore from Rs 1 crore. But banks should now do the handholding," Singh said at 'Empowering Women Entrepreneurs 2019' event organised by National SC-ST Hub, Ministry of MSME.

He further said that after increasing the limit, loans have been disbursed to 18 lakh entrepreneurs under this scheme till last month and we hope this will cross 20 lakh by March 31, this year.

"There are women entrepreneurs who need collateral free loans. If banks fear lending without collaterals then let me assure you, based on my experience, that there is recovery.

Participation of women in entrepreneurship is a must for leading the nation forward," the minister said.

He informed the gathering that the corpus of the the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme has been raised from Rs 2,500 crore to Rs 7,500 crore.

"Five crore people have been given loans under MUDRA.

Many woman entrepreneurs are reaping the benefit of micro-finance schemes as well," he added.

Singh also noted that the women entrepreneurs present to come under the ambit of GST, which will facilitate them in securing loans.

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