Giriraj Singh Urged Banks To Work On Collateral Free Loans for MSMEs

Considering the criticality of most common and widespread credit related complaint among Indian MSMEs, Giriraj Singh MSME Minister urged that the banks should provide collateral free loans to SC and ST entrepreneurs and in case of non-acceptance of loan banks should also be responsible to provide reasons for non- sanction, so that the entrepreneur can look for alternative options.

He added that the Banks are key promoters for the financial inclusion of SC/ST MSMEs

Information is a key factor that can expedite loan procurement by MSMEs as well as allow them to utilise it judiciously, said Ram Mohan Mishra, Additional Secretary & Development Commissioner, MoMSME.

He highlighted that most MSE players lack the expertise to understand and predict the complicated market dynamics which act as a hindrance in seeking loans.

He therefore urged the private companies, industry associations and other bodies who have the knowledge, reach and expertise, to provide requisite know-how and market landscape to steer the entrepreneurs in the right direction.

Arun Kumar Panda, Secretary MoMSME, seconded the thought and urged all MSME entrepreneurs to register at the online portals such as GSTIN, Udyog Aadhar, Sambandh Portal etc. to receive the updates from time to time on availability of loans, schemes as well as requirements of PSUs.

Alka Arora, Joint Secretary, Ministry of MSME said that to assist entrepreneurs with respect to loan procurement as well as information assistance, the MoMSME has taken many initiatives.

The National SC/ST Hub established by the MoMSME, is one such initiative to provide professional support to SC/ST entrepreneurs and has set up offices in 12 cities.

Along with multiple schemes initiated by the NSSH, the Private Affirmative Action Scheme would increase the diversity and more private sector opportunities for SC/ST entrepreneurs.

The inclusion of SC/ST entrepreneurs along with MSME business owners is mandatory for meeting the objective of employment generation and financial inclusion, said Shreekant Somany, Chairman CII National MSME Council.