Mumbai, Aug 14
Government PSU, the National Small Industries Corporation (NSIC), signed Memorandums of Understanding (MOU) with several private sector banks to enhance the availability of credit for MSMEs under its MSME Credit facilitation programme, an official statement said.
The MOUs also aim to enhance accessibility and affordability of the credit to MSMEs, an official statement said.
The MOUs were signed with Axis Bank, Dhanlaxmi Bank, Karnataka Bank, AU Small Finance Bank, and IndusInd Bank, the release said.
Union MSME Minister Jitan Ram Manjhi and MSME Secretary S.C.L. Das were also present on the occasion. "The MoUs were exchanged between NSIC's Director, Finance, Gaurav Gulati and senior officials from various banks," the release said.
The collaboration aims to extend handholding support to MSMEs and help them link to the formal financial system. The MOU focuses on the banks to expand their outreach to deserving micro & small enterprises, and the arrangement is expected to be a force multiplier in the efforts of banks to reach the last mile, it added.
This development aligns with Prime Minister Narendra Modi's recent calls for the ‘Vocal for Local’ initiative. It encourages citizens and businesses to prioritise locally made products over imports to promote domestic manufacturing, create jobs, and boost the local economy.
Pradhan Mantri MUDRA Yojana (PMMY), since its inception, has sanctioned 53.85 crore loans amounting to over Rs 35.13 lakh crore. The PMMY provides collateral-free credit of up to Rs 20 lakh to micro and small enterprises, thereby enabling self-employment and income generation.
More than 10 lakh micro and small enterprises (MSEs) have joined the Government e-Marketplace (GeM) portal, and the total transaction value on GeM has reached around Rs 5.40 lakh crore in FY2024-25
NSIC, a PSU under the MSME Ministry, has been working to promote, aid and foster the growth of MSMEs since 1955 in India, and has been a frontrunner in bringing new initiatives for MSMEs and solving their challenges by facilitating through various schemes.
— IANS
Reader Comments
Good initiative but implementation is key. Many such schemes fail to reach actual beneficiaries due to complex paperwork. Banks should simplify documentation process for first-time entrepreneurs from tier 2/3 cities.
Vocal for Local + easier credit access = perfect combo for Atmanirbhar Bharat! My textile unit in Surat can finally expand operations. Kudos to NSIC for this move. 🇮🇳
Why only private banks? Shouldn't public sector banks be more involved since they have wider reach in rural areas? This seems like half-measure to me.
As someone who availed MUDRA loan last year, I can vouch these schemes work! My homemade pickle business now employs 6 women from my village. More power to MSMEs! 💪
₹35 lakh crore disbursed under MUDRA is impressive number but what's the NPA rate? Banks need to balance between supporting MSMEs and maintaining financial discipline.
GeM portal transactions crossing ₹5.4 lakh crore shows how digital India is transforming MSME sector. Next step should be helping small businesses with export documentation!
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.