(a) the number of applications received, accepted and loans given under the new 59minutes Micro, Small and Medium Enterprise (MSME) loan scheme across the country, bank-wise;
(b) whether any other initiatives have been taken to ensure effective credit to MSMEs; and
(c) if so, the details thereof and the steps taken by the Government in this regard?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(a) As on 31.10.2019, out of 2, 39,828 loan applications received, 1,90,543 applications have been accorded in-principle approval and 1,60,885 applications have been finally sanctioned using psbloansin59minutes portal. Bank-wise details are given in Annexure.
(b) & (c) Apart from the psbloansin59minutes portal, a number of steps have been taken to enable effective credit to Micro Small and Medium Enterprises (MSMEs), which, inter-alia, include the following:
(i) 2% interest subvention for MSMEs for loans up to Rs. 1 crore for the financial years 2018-19 (w.e.f. 02.11.2018) and 2019-20.
(ii) Reserve Bank of India (RBI) has issued framework for Revival and Rehabilitation of MSMEs having loan limits up to Rs. 25 crore on 17.03.2016.
(iii) RBI has permitted one-time restructuring of existing loans to stressed MSME units which are classified as ‘ standard’ without a downgrade in asset classification vide circular dated 01.01.2019.
(iv) Collateral free loans up to Rs 10 lakh for units in the Micro and Small Enterprise (MSE) Sector.
(v) MSME loans, including service sector MSMEs, classified as Priority Sector Lending.
(vi) Implementation of Trade Receivables Discounting System (TReDS) to resolve the problem of delayed payments to MSMEs and classification of factoring transactions as Priority Sector Lending.
(vii) Target of 7.5 percent of Adjusted Net Bank Credit (ANBC), or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, fixed for Scheduled Commercial Banks (SCBs) for lending to Micro Enterprises.
(viii) Calculation of working capital requirement up to Rs. 5 crore of MSEs simplified by defining it as 20% of projected annual turnover.
(ix) Banks advised to mandatorily acknowledge MSME loan applications and put in place system for their on-line tracking.
(x) RBI has advised banks to streamline flow of credit to MSEs for facilitating timely and adequate credit flow during their ‘Life Cycle’.
*****