Up to Rs. 100Lakh loan, 85% guarantee for the MSME, under ‘Credit Guarantee Scheme” –  Mishra

Mumbai: June 24, 2016

The Union Minister of Micro, Small & Medium Enterprises, Shri Kalraj Mishra said that Government of India was ensuring implementation of  credit rating system for Medium and Small enterprises in the country   . He said that  , access to capital and cost of capital were  major challenges in the Growth of Medium and Small enterprises in the country   and the  credit ratings , as they become more relevant would not only  facilitate faster access to capital but also  ensure  favorable terms of borrowings. He was speaking in India’s Small Giants Award Function of India’s SME Forum, and ‘Business Class 2016’ a day long program in Mumbai today He sai that National Small Industries Corporation (NSIC) was implementing credit rating scheme on behalf of Ministry of MSME. The scheme provides for reimbursement of performance and rating fee up to 75% of the fee charge by the Rating Agency subject to maximum ceiling of Rs. 40000/- .

Expressing  his views on ‘Make in India”:, he said that  ‘Make in India’ was  a good starting point where department MSME would contribute significantly. He said  that his Ministry was also implementing Credit Linked Capital Subsidy Scheme (CLCSS) for assisting MSE’s. The scheme provides for 15% capital subsidy on institutional loans up to Rs. 1 crore availed by the MSMEs. He said that his Ministry was conducting skill development program for value chain of manufacturing , starting from village industries to state of the art manufacturing , in sectors like engineering, auto component etc. 18 tool rooms and technology development centers were  providing training to 1lakh youth all over the country.

The Minister  said that the availability of adequate credit was  paramount to success of the Micro, Small and Medium Enterprises. To ensure better flow of credit to MSE’s and to minimize the risk perception of banks or  financial institutions in lending without collateral security,,  the government was  implementing the credit guarantee scheme. The scheme provides guarantee cover of up to 85% on collateral – free credit facility extended by lending institutions to new and existing MSME’s for loan up to Rs. 100 Lakh.

The Minster gave away awards to 40 individuals and enterprises for their achievement at a function organised by  SME forum in Mumbai.