Gujarat govt partners with SBI to facilitate MSME loans
As per the MoU, the top public sector lender willprovide working capital to entrepreneurs seeking to start newmicro, small and medium enterprises (MSME) within a short time-frame after providing theoretical approval within 15 days ofmaking an application, the government said in a release here.
The MoU was signed between principal secretary M K Dasand SBI Ahmedabad circle general manager Ramesh Kumar Agarwal.
Within 15 days of making an application, the bank willprovide theoretical approval to the project. Start-ups cansubmit an application on either the MSME portal or to thelocal nodal agencies, it said.
The SBI decided to help MSME entrepreneurs in Gujaratlooking at their high recovery rate, said the release.
Chief Minister Vijay Rupani, also present at the MoUsigning event, said the number of applications for MSME loanshas increased this year compared to a year ago.
Even the experience of banks in terms of loan recoveryhas been very good, he said.
The state government had, in October last year,announced that MSME units will no longer be required to takevarious approvals to begin operations for the first threeyears.
The government said MSME units exempted from takingapprovals for the first three years, can start operationsafter getting an acknowledgment certificate from the statenodal agency by submitting 'declaration of intent.' KA PDAPRSY RSY