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New Delhi, Feb 26 () The Centre has decided to include non-scheduled urban and district central cooperative banks in three big ticket schemes to facilitate access to finance for the MSME sector. These schemes include the credit guarantee fund trust for micro and small enterprises, credit linked capital subsidy scheme and interest subvention. The initiative is expected to expand the outreach of the schemes considerably which in turn shall help address the crucial requirement of access to finance of the MSME sector. "The NBFCs have about 13 per cent share in MSME lending, and extend hassle-free credit to MSME sector, especially in the remote areas. The inclusion of NBFCs, scheduled and non-scheduled urban cooperative banks and district central cooperative banks in these schemes will spread the outreach and easy access of credit," Union MSME Minister Nitin Gadkari told . He said the step will also create uniformity and competitiveness across lenders in the financial sector, as the borrower will have the option to choose the lender in accordance with their convenience and approach. "These schemes have been serving the sector but there was a need to take them to next level. Therefore, the ministry has decided to include the non-scheduled urban cooperative banks and district central cooperative banks in the the credit guarantee fund trust for micro and small enterprises; credit linked capital subsidy scheme; and interest subvention scheme," Gadkari said. RSN MKJ

Govt to include non-scheduled urban, district co-op banks in 3 schemes for MSMEs

The Reserve Bank of India on Sunday said lending institutions should assign zero% risk weight on the credit facilities extended under the Emergency Credit Line Guarantee Scheme to MSME borrowers announced by the government in the wake of COVID-19 pandemic. The government in May introduced the Emergency Credit Line Guarantee Scheme (ECLGS) for providing 100% guarantee coverage for additional working capital term loans (in case of banks and financial institutions) and additional term loans (in case of NBFCs) up to 20% of their entire outstanding credit up to Rs 25 crore as on February 29, 2020. The credit facility is guaranteed by the National Credit Guarantee Trustee Company (NCGTC). "As credit facilities extended under the scheme guaranteed by NCGTC are backed by an unconditional and irrevocable guarantee provided by Government of India, it has been decided that Member Lending Institutions shall assign zero percent risk weight on the credit facilities extended under this scheme to the extent of guarantee coverage," the RBI said in a notification. Lending institutions include, banks, eligible NBFCs and HFCs, and All India Financial Institutions (SIDBI, NHB, NABARD, EXIM Bank). In a separate release, the RBI said the central government has re-nominated Natarajan Chandrasekaran as a part-time non-official Director on the Central Board of Reserve Bank of India, for a further period of two years beyond March 3, 2020, or until further orders. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/only-5-of-the-governments-msme-emergency-loan-package-is-disbursed-after-a-month/articleshow/76437386.cms">Only 5% of the government’s MSME emergency loan package is disbursed after a month ⁠— private banks are sitting tight</a> <a href="https://www.businessinsider.in/business/corporates/news/bajaj-finance-share-price-and-earnings-expectation/articleshow/75751469.cms">Bajaj Finance’s quarterly earnings may not reflect the real potential for rebound⁠ after Sitharaman’s big push for MSME</a> <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitaraman-announces-six-steps-for-msme-sector/articleshow/75717258.cms">Finance Minister Nirmala Sitharaman announces six measures for the MSME sector</a>

RBI tells banks to assign 'zero' risk for emergency loans to MSME

New Delhi, Jun 16 () State Bank of India on Tuesday said it has disbursed Rs 8,700 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, pummelled by the coronavirus-induced lockdown. As per the directions of the finance ministry, SBI and other banks rolled out the Guaranteed Emergency Credit Line (GECL) loan product to support MSMEs and business enterprises as per the guidelines of NCGTC. ECLGS is the biggest fiscal component of the mega Rs 20-lakh crore package announced last month. Under the scheme, 100 per cent guarantee coverage is being provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested MUDRA borrowers in the form of a GECL facility. "The bank has sanctioned GECL aggregating Rs 15,000 crore to 1.5 lakh MSME customers. SBI so far has disbursed loans worth Rs 8,700 crore," SBI said in a statement. Additional supportive measures such as COVID Emergency Credit Line, re-assessment of working capital limits, and restructuring of advances are also being made available to MSME customers, it said. "MSMEs formed a very crucial part of the announcements made under the 'Atmanirbhar Bharat Abhiyan' by the Government of India wherein MSMEs were defined. To empower them in the wake of the COVID-19 crisis, SBI organized more than 125 E-Town Hall Meetings from May to date," it said. As per directives of the Department of Financial Services, it said, SBI conducted Circle level meetings to reach out to MSME customers and explain the various relief and financial support measures provided to them to fight the COVID-19 outbreak. The main objective of the scheme is to provide an incentive to member lending institutions to increase access and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis. The scheme gives the lenders 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers. All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, and with an annual turnover of up to Rs 100 crore, would be eligible for GECL funding under the scheme. DP ANU ANU

SBI disburses Rs 8,700 cr to MSMEs under emergency credit guarantee scheme

Mumbai, Jun 29 () Nearly a fifth of the 45 lakh small businesses identified by the government to benefit from a credit guarantee scheme have low credit rankings, and banks should prioritise the remaining 80 per cent while extending loans under the Rs 3 lakh crore package, a study by Transunion Cibil said on Monday. The Guaranteed Emergency Credit Line (GECL) facility is applicable to all MSME (micro, small and medium enterprises) borrowers with industry-wide aggregate credit exposure of up to Rs 25 crore and industry-wide delinquency less than or equal to 60 days as of February 29, 2020. The government is targeting to ensure that the MSME sector gets fresh credit of over Rs 3 lakh crore by October 2020 through the scheme as against the Rs 2.8 lakh crore achieved in 2019-20. The Rs 3 lakh crore package is a significant part of the Rs 20 lakh crore COVID-19 stimulus announced by the government. As per the government, there are 45 lakh MSMEs in the country who have been identified as eligible for the scheme. The largest difficulty seems to be in the category classified as "medium", with 38 per cent of the companies marked out as "sub-prime" borrowers, while the lowest risk seems to be with the "micro" segment which has only 18 per cent of the borrowers in the same segment, it said. Eligible MSMEs can borrow up to 20 per cent of their aggregate credit exposure. The loans have four-year tenor with the first 12 months of principal covered under moratorium to further assist MSMEs benefitting from the scheme, a statement from Transunion Cibil said. The credit information company relied on its MSME ranking solution and went into results of it as of February 29 to identify the companies which should be prioritised by banks. While the banks will not lose money if any of the low ranked companies defaults, the risks from a credit management perspective are high, it said. The analysis revealed that 81 per cent belong to what is considered the structurally strong section of CIBIL Rank - CMR-6 or less, it said, adding that the ranking is an algorithm-based solution which predicts the probability of an MSME becoming a non-performing asset (NPA) in the next 12 months. "The ECLGS package is well structured scheme which not only provides the much needed access to funds for deserving MSMEs but also ensures long term stability of the portfolio quality of lending institutions," company's managing director and chief executive Rajesh Kumar said. He, however, seemed to be warning against complacency. "In the rapidly changing market conditions, the dynamics of MSME businesses are evolving every day and therefore it's important to not only rely on original structural strength of MSME but to also regularly monitor borrower's behaviour," he said. The company said finding and funding the good MSMEs is critical to the recovery of the Indian economy. AA ANU ANU

Banks should prioritise giving loans to non-eligible MSMEs under GECL: Report

(Eds: Correcting headline) Mumbai, Jun 29 () Nearly a fifth of the 45 lakh small businesses identified by the government to benefit from a credit guarantee scheme have low credit rankings, and banks should prioritise the remaining 80 per cent while extending loans under the Rs 3 lakh crore package, a study by Transunion Cibil said on Monday. The Guaranteed Emergency Credit Line (GECL) facility is applicable to all MSME (micro, small and medium enterprises) borrowers with industry-wide aggregate credit exposure of up to Rs 25 crore and industry-wide delinquency less than or equal to 60 days as of February 29, 2020. The government is targeting to ensure that the MSME sector gets fresh credit of over Rs 3 lakh crore by October 2020 through the scheme as against the Rs 2.8 lakh crore achieved in 2019-20. The Rs 3 lakh crore package is a significant part of the Rs 20 lakh crore COVID-19 stimulus announced by the government. As per the government, there are 45 lakh MSMEs in the country who have been identified as eligible for the scheme. The largest difficulty seems to be in the category classified as "medium", with 38 per cent of the companies marked out as "sub-prime" borrowers, while the lowest risk seems to be with the "micro" segment which has only 18 per cent of the borrowers in the same segment, it said. Eligible MSMEs can borrow up to 20 per cent of their aggregate credit exposure. The loans have four-year tenor with the first 12 months of principal covered under moratorium to further assist MSMEs benefitting from the scheme, a statement from Transunion Cibil said. The credit information company relied on its MSME ranking solution and went into results of it as of February 29 to identify the companies which should be prioritised by banks. While the banks will not lose money if any of the low ranked companies defaults, the risks from a credit management perspective are high, it said. The analysis revealed that 81 per cent belong to what is considered the structurally strong section of CIBIL Rank - CMR-6 or less, it said, adding that the ranking is an algorithm-based solution which predicts the probability of an MSME becoming a non-performing asset (NPA) in the next 12 months. "The ECLGS package is well structured scheme which not only provides the much needed access to funds for deserving MSMEs but also ensures long term stability of the portfolio quality of lending institutions," company's managing director and chief executive Rajesh Kumar said. He, however, seemed to be warning against complacency. "In the rapidly changing market conditions, the dynamics of MSME businesses are evolving every day and therefore it's important to not only rely on original structural strength of MSME but to also regularly monitor borrower's behaviour," he said. The company said finding and funding the good MSMEs is critical to the recovery of the Indian economy. AA ANU RAM

Banks should prioritise loans to MSMEs with higher credit rankings under GECL: Report

<keyword id="20190045" type="General" weightage="20" keywordseo="Industry-body" source="keywords">Industry body</keyword> <keyword id="21568150" type="General" weightage="20" keywordseo="SME-Chamber-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="SME Chamber of India" meta.hostid="261" meta.entityid="SME Chamber of India">SME Chamber of India</keyword> has urged <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> to continue the 45-day <keyword id="21233021" type="General" weightage="100" keywordseo="MSME-payment-rule" source="keywords">MSME payment rule</keyword> for <keyword id="20008810" type="General" weightage="20" keywordseo="corporates" source="keywords">corporates</keyword> and other buyers. According to Section 43B(h) of the <keyword id="19936187" type="General" weightage="20" keywordseo="Income-Tax-Act" source="keywords">Income Tax Act</keyword>, introduced through the <keyword id="19955404" type="General" weightage="20" keywordseo="finance" source="keywords">Finance</keyword> Act 2023, if a larger company does not pay an MSME on time -- within 45 days in case of written agreements -- it cannot deduct that expense from its taxable income, leading to potentially higher taxes. The government in last year's Budget added a new clause under Section 43B of the Income Tax Act to address the challenge of delayed payments faced by MSMEs in the country. "We are pursuing not to change the 45-day MSME payment rules imposed by the Department under the pressure of corporates or multinational companies to save the life span of the MSME sector. Section 43B(h) of the Income Tax Act reinforces the importance of timely payments by mandating that companies settle payments to MSME vendors within 45 days to qualify for deductions," SME Chamber said in a statement addressed to Sitharaman. The industry body argued that this provision serves as a powerful incentive for companies to adhere to payment timelines, thereby supporting the financial health of MSMEs. "Many MSMEs are NPA victims of corporates, who are buying from them and not dealing through the TReDs platform. Most of the corporates and multinational companies are forcefully insisting to deregister from the Udyam Portal and insisting not to deal through the TReDs platform," SME Chamber stated. The industry body also urged the finance minister to consider providing Rs 5 crore loans under the "Differential Rate of Interest" scheme for micro and <keyword id="20569966" type="General" weightage="20" keywordseo="small-enterprises" source="keywords">small enterprises</keyword>. It suggested changing the NPA definition from 90 days to 180 days for the MSME sector. The chamber also sought the setting up of a task force to review various issues, hurdles, grievances and difficulties faced by MSMEs for availing credit facilities and the lack of approach by the financial institutions towards enhancement of credit flow to the MSME sector.

Continue 45-day MSME payment rule: Industry body to Finance Minister Nirmala Sitharaman

<bulletContentEmbed name="INAUGURAL ADDRESS (POLICY)" columns="1"><bulletContentHeading name="INAUGURAL ADDRESS (POLICY)_head"><div type="image" title="100153980" msid="101167632" hostid="261" sizebytes="345127"></div></columnHeadThumb>INAUGURAL ADDRESS (POLICY)</columnHeadTitle></columnHead></bulletContentHeading><bulleteContentBody name="INAUGURAL ADDRESS (POLICY)_body"><bulletContentRow name="INAUGURAL ADDRESS (POLICY)_9886212833743733"><bulletContentRowHeading><bulletContentRowHead col="1">Promoting <keyword id="6358354" type="General" weightage="20" keywordseo="msme" source="Orion">MSME</keyword> growth &amp; ease of doing business</bulletContentRowHead></bulletContentRowHeading><bulletContentRowBody><bulletContentRowCell col="1">Small businesses are the growth engine for India’s economy. We shine the spotlight on the policy push to foster ease of doing business by providing faster avenues of credit and schemes to support the MSME sector. And more importantly, the need for digitising the lending process to enhance the ecosystem and overcome challenges.</bulletContentRowCell></bulletContentRowBody></bulletContentRow></bulleteContentBody></bulletContentEmbed> <bulletContentEmbed name="KEYNOTE ADDRESS" columns="1"><bulletContentHeading name="KEYNOTE ADDRESS_head"><div type="image" title="100153980" msid="101167642" hostid="261" sizebytes="345127"></div></columnHeadThumb>KEYNOTE ADDRESS</columnHeadTitle></columnHead></bulletContentHeading><bulleteContentBody name="KEYNOTE ADDRESS_body"><bulletContentRow name="KEYNOTE ADDRESS_2649762537898081"><bulletContentRowHeading><bulletContentRowHead col="1">Fuelling MSME growth for $5 trillion economy</bulletContentRowHead></bulletContentRowHeading><bulletContentRowBody><bulletContentRowCell col="1">India’s journey towards a five trillion economy is going to be powered by small and medium businesses – these engines of innovation. There is a collective need to ideate, innovate and create tools that will boost the MSME landscape for the next decade.</bulletContentRowCell></bulletContentRowBody></bulletContentRow></bulleteContentBody></bulletContentEmbed>

Day 1

<bulletContentEmbed name="INAUGURAL ADDRESS (POLICY)" columns="1"><bulletContentHeading name="INAUGURAL ADDRESS (POLICY)_head"><div type="image" title="Agenda1" msid="100270754" hostid="261"></div></columnHeadThumb>INAUGURAL ADDRESS (POLICY)</columnHeadTitle></columnHead></bulletContentHeading><bulleteContentBody name="INAUGURAL ADDRESS (POLICY)_body"><bulletContentRow name="INAUGURAL ADDRESS (POLICY)_8067900943426201"><bulletContentRowHeading><bulletContentRowHead col="1">Promoting <keyword id="6358354" type="General" weightage="20" keywordseo="MSME" source="Orion">MSME</keyword> growth &amp; ease of doing business</bulletContentRowHead></bulletContentRowHeading><bulletContentRowBody><bulletContentRowCell col="1">Small businesses are the growth engine for India’s economy. We shine the spotlight on the policy push to foster ease of doing business by providing faster avenues of credit and schemes to support the MSME sector. And more importantly, the need for digitising the lending process to enhance the ecosystem and overcome challenges. <div type="image" title="Varun Duggirala" msid="100270631" hostid="261" caption="&amp;lt;p&amp;gt;Influencer, Podcaster, Entrepreneur&amp;lt;/p&amp;gt;"></div> <div type="image" title="Karan Virwani" msid="100270652" hostid="261" caption="&amp;lt;p&amp;gt;CEO&amp;lt;br&amp;gt;WeWork India&amp;lt;/p&amp;gt;"></div> <div type="image" title="Anurag Malik" msid="100270689" hostid="261" caption="&amp;lt;p&amp;gt;National Leader&amp;lt;br&amp;gt;WAS, EY India&amp;lt;/p&amp;gt;"></div> <div type="image" title="Anjali Byce" msid="100270731" hostid="261" caption="&amp;lt;p&amp;gt;CHRO&amp;lt;br&amp;gt;Sterlite Technologies&amp;lt;/p&amp;gt;"></div> <div type="image" title="Dr. Marcus Ranney" msid="100820352" hostid="261" sizebytes="390972" caption="&amp;lt;p&amp;gt;Author &amp;amp;amp; Founder&amp;lt;br&amp;gt;Human Edge&amp;lt;/p&amp;gt;&amp;lt;p&amp;gt;&amp;lt;span&amp;gt;&amp;lt;/span&amp;gt;&amp;lt;/p&amp;gt;"></div> </bulletContentRowCell></bulletContentRowBody></bulletContentRow></bulleteContentBody><payload><![CDATA[04:30 - 04:40]]></payload></bulletContentEmbed> <bulletContentEmbed name="KEYNOTE ADDRESS" columns="1"><bulletContentHeading name="KEYNOTE ADDRESS_head"> <div type="image" title="Agenda2" msid="100270815" hostid="261"></div></columnHeadThumb>KEYNOTE ADDRESS</columnHeadTitle></columnHead></bulletContentHeading><bulleteContentBody name="KEYNOTE ADDRESS_body"><bulletContentRow name="KEYNOTE ADDRESS_0556630790449101"><bulletContentRowHeading><bulletContentRowHead col="1">Fuelling MSME growth for $5 trillion economy</bulletContentRowHead></bulletContentRowHeading><bulletContentRowBody><bulletContentRowCell col="1">India’s journey towards a five trillion economy is going to be powered by small and medium businesses – these engines of innovation. There is a collective need to ideate, innovate and create tools that will boost the MSME landscape for the next decade. <div type="image" title="Karishma Mehta" msid="100270928" hostid="261" caption="&amp;lt;p&amp;gt;Founder&amp;lt;br&amp;gt;Humans of Bombay&amp;lt;/p&amp;gt;"></div></bulletContentRowCell></bulletContentRowBody></bulletContentRow></bulleteContentBody><payload><![CDATA[04:40 - 04:50]]></payload></bulletContentEmbed>

Day 1,  January 18, 2023

Lucknow, Nov 18 () An export promotion body on Monday suggested the government to bring out a separate policy for micro, small and medium units to address their problems.
 The Export Promotion Council (EPC) also urged the Uttar Pradesh government to link such a policy with its one-district one-product scheme. 
 The EPC highlighted various problems like credit availability and fund cost faced by MSMEs and exhorted the state and central governments and the RBI to address these issues on a priority basis.
 "Despite the significant contributions of the MSME sector, this sector is still facing several challenges such as availability of adequate and timely credit, high cost of credit, collateral requirements, access to equity capital and revival of sick units," EPC Chairman D S Rawat said here.
 "In view of these problems, the governments need to bring a separate policy for the micro and small industry and UP government should link its ambitious one-district one-product scheme with it," Rawat stressed.
 To help the sector, the EPC also announced a four-day summit and trade fair on Agro-rural entrepreneurship, unleashing opportunities for youth, women and artisans on February 13-16 in Lucknow followed by SC-ST Entrepreneurship and Women Empowerment in Purvanchal in May next year.
 The trade fair will be inaugurated by Prime Minister Narendra Modi and Home Minister Amit Shah and Defense Minister Rajnath Singh will also attend, Rawat pointed out.
 During the press conference, Rawat and Chairman of the UP Chapter of the EPC Harinarayan Rajbhar jointly released the study on MSME Sector - Uttar Pradesh.
 The state has acquired number one position both in numbers and employment.
 Uttar Pradesh has registered a 100 per cent growth in micro, small and medium enterprises between 2015-16 and 2017-18 from 44.03 lakh to 88.89 lakh, according to the study, according to the study undertaken by the MSME Export Promotion Council (MSME EPC).
 The state has been on an average adding 15 lakh new MSME units every year since 2015-16 and providing jobs to more than 165 lakh people, 27.27 lakh to female and 137.92 lakh to male, the study says. SAB SHW MR
MR

You Searched For "MSME credit" and got 9 results

Govt to include non-scheduled urban, district co-op banks in 3 schemes for MSMEs

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RBI tells banks to assign 'zero' risk for emergency loans to MSME

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SBI disburses Rs 8,700 cr to MSMEs under emergency credit guarantee scheme

PTI

Banks should prioritise giving loans to non-eligible MSMEs under GECL: Report

PTI

Banks should prioritise loans to MSMEs with higher credit rankings under GECL: Report

PTI

Continue 45-day MSME payment rule: Industry body to Finance Minister Nirmala Sitharaman

PTI

Day 1

Day 1, January 18, 2023

Export promotion body demands separate policy for MSMEs

PTI

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