While responding to a question in Rajya Sabha, Mr. Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises in a written reply explained the status of the outstanding credit given to the MSME sector by banks. In his reply, he unleashed the data related to credit given to MSMEs. As a highlight, the credit outflow to MSMEs in 2019 grew to the total of Rupees 1510650.52 Crores from the 2018 figures of Rupees 1324239.35 Crores.
As per the written reply submitted in Rajya Sabha by Mr. Gadkari, the total outstanding credit to the MSME sector by Scheduled Commercial Banks in the last three years is furnished in the following table:
|Year||No. of A/c (in Lakh)||Amount O/s (in Rs. Crore)|
Credit to MSME Sector is influenced by various factors which inter-alia also include funding and liquidity challenges faced by the Non Banking Finance Companies. In order to facilitate the availability of credit to Micro, Small and Medium Enterprises, Government has taken several measures. These include provisions of margin money subsidy under Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Support, Scheme for Interest Subvention, Credit Linked Capital Subsidy Scheme (CLCSS), loans to micro-enterprises under the Prime Minister’s Mudra Yojana and support under Startup India and Stand up India programmes, 59 minutes loan portal and MSME-Samadhaan portal.
This information was given by Shritoday.