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<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

<keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>'s <keyword id="23127366" type="General" weightage="20" keywordseo="consumption-loan" source="Orion">consumption loan</keyword> portfolio grew by 15.2% year-on-year (YoY) to Rs 90.3 lakh crore as of March 2024, according to the latest <keyword id="6354680" type="General" weightage="20" keywordseo="credit" source="Orion">credit</keyword> bureau report. The fourth edition of the CRIF High Mark report noted a slowdown from the 17.4% growth recorded in March 2023, largely due to a deceleration in the home <keyword id="6362287" type="General" weightage="100" keywordseo="loans" source="Orion">loans</keyword> segment, which accounts for 40.1% of the overall consumption loan portfolio by value. The home loans portfolio saw growth slowing down to 7.9 % YoY in FY24, from the 23 % expansion seen in FY23. This was mainly due to muted growth in "originations", which increased by 9.2 % in FY'24 compared to 18.2 % in the previous fiscal year. Origination refers to the process by which a lender creates or initiates a new loan or credit, including evaluating, processing, and approving a borrower's application. The report finds a shift toward higher <keyword id="6871589" type="General" weightage="20" keywordseo="ticket-size" source="Orion">ticket size</keyword>s, with a growing preference for loans above Rs 35 lakh, although the average ticket size (ATS) rose by 32% from Rs 20.1 lakh in FY20 to Rs 26.5 lakh in FY24. In contrast, the personal loans segment maintained strong momentum, growing by 26% YoY in FY24, despite recent regulatory reforms. Larger ticket loans of Rs 10 lakh and above increased their share in originations by value, while loans under Rs 1 lakh continued to dominate in volume. Banks led in value-based originations, whereas non-banking financial companies (NBFCs) remained dominant in volume. Two-wheeler loans experienced a 34% YoY growth in FY24, up from 30% in FY23, fueled by a shift to higher ticket-size loans. However, the overall volume of originations grew at a slower pace of 13% in FY24 compared to 32% in FY23. <keyword id="35527" type="General" weightage="20" keywordseo="auto-loans" source="Orion">Auto loans</keyword>, on the other hand, grew by 20% YoY in FY24, compared to 22% in FY23. Consumer durable loans posted a robust growth of 34% YoY in FY24, up from 26% expansion in the previous fiscal. This growth was driven by a shift to larger ticket sizes, although origination volumes grew by only 8.5% in FY24, compared to 38.2% in FY23. The MSME lending segment displayed mixed results, with individual MSME loans growing faster than entity MSMEs. The individual MSME portfolio increased by 29% YoY in FY24, accelerating from 15% in FY23, while entity MSME loans grew by just 6.6 % YoY, a sharp slowdown from 17.2 % in the previous year. Microfinance lending also saw strong growth, with the portfolio rising by 27% YoY in FY24, compared to 21% in FY23. "The resilience of the Indian credit market is evident in the strong performance across various lending categories and the stability in delinquencies. Home loans remain dominant, but the growth in personal loans, two-wheeler loans, and the rebound of NBFCs highlight significant shifts in the lending landscape," CRIF High Mark MD Sanjeet Dawar said.

Consumption loan portfolio expands 15% to Rs 90 lakh crore in FY24, notes CRIF report

The technology platform for providing "<keyword id="22918315" type="General" weightage="20" keywordseo="frictionless-credit" source="keywords">frictionless credit</keyword>" launched by the <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="100" keywordseo="RBI" source="keywords">RBI</keyword>) last year as a pilot project will soon be introduced nationwide soon, said Reserve Banks of India Governor, <keyword id="19913110" type="General" weightage="20" keywordseo="shaktikanta-das" source="keywords">Shaktikanta Das</keyword> on Monday. This technology platform will be named "<keyword id="22918314" type="General" weightage="20" keywordseo="Unified-Lending-Interface" source="keywords">Unified Lending Interface</keyword> (ULI)", Das said while speaking in Bengaluru at the event of the Global Conference on Digital Public Infrastructure and Emerging Technologies. Governor Das said "Just like <keyword id="19900911" type="General" weightage="20" keywordseo="UPI" source="keywords">UPI</keyword> transformed the payments ecosystem, we expect that ULI will play a similar role in transforming the lending space in India. The 'new trinity' of JAM-UPI-ULI will be a revolutionary step forward in India's <keyword id="20018890" type="General" weightage="20" keywordseo="digital-infrastructure" source="keywords">digital infrastructure</keyword> journey." The ULI platform facilitates a seamless and consent-based flow of digital information, including even land records of various states, from multiple data service providers to lenders. The technology platform introduced last year as a pilot projects cuts down the time taken for credit appraisal, especially for small and rural borrowers. Das stated that the ULI architecture has common and standardised APIs, designed for a 'plug and play' approach to ensure digital access to information from diverse sources. "This reduces the complexity of multiple technical integrations. It enables borrowers to get the benefit of seamless delivery of credit, and quicker turnaround time without requiring extensive documentation. By digitising access to customer's financial and non-financial data that otherwise resided in disparate silos, ULI is expected to cater to large unmet demand for credit across various sectors, particularly for agricultural and MSME borrowers," the RBI governor stated. Showing confidence in the newly launched ULI, Das said, "Just like UPI transformed the payments ecosystem, "we expect that ULI will play a similar role in transforming the lending space in India." Speaking about the success of Unified Payment Interface (UPI) Das said, "The current ecosystem of digital payments in India offers a bouquet of simple, safe, and secure options for instant or quick transfer of funds, both large and small value, for businesses and individuals." Das further stated stated that the apex bank is consistently trying to secure the financial system in the country. "We are constantly working on devising policies, approaches, systems and platforms that will make our financial sector stronger, nimble and customer-centric," Das said. Additionally, Das also highlighted that the central bank is constantly working on devising policies, systems, and platforms that will make the financial sector stronger, nimble and customer-centric. Das said that over the last decade, the traditional banking system has undergone an unprecedented technological transformation. By all indications, this process is likely to become even more intense in the coming years, he said. On the country's experience in DPI, he said, "DPI has enabled India to achieve in less than a decade levels of financial inclusion that would have otherwise taken several decades or even more" He also emphasised that UPI system has the potential to evolve into a cheaper and quicker alternative to available channels of cross-border remittances. The Governor also stressed that financial institutions should be abundantly mindful of associated risks of Artificial Intelligence.

After UPI, RBI set to launch Unified Lending Interface (ULI) for friction-less credit

<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> on Tuesday announced a <keyword id="20274081" type="General" weightage="20" keywordseo="credit-guarantee-scheme" source="keywords">credit guarantee scheme</keyword> for facilitating <keyword id="22087606" type="General" weightage="20" keywordseo="term-loans" source="keywords">term loans</keyword> for <keyword id="19910977" type="General" weightage="20" keywordseo="MSMEs" source="keywords">MSMEs</keyword> to purchase machinery and equipment without collateral or third-party guarantee. In her Budget speech in the Lok Sabha, she said the Budget provides special attention to micro, small &amp; medium enterprises (MSMEs) and manufacturing, particularly labour-intensive units. "We have formulated a package, covering financing, <keyword id="20961204" type="General" weightage="20" keywordseo="regulatory-changes" source="keywords">regulatory changes</keyword> and technology support for MSMEs to help them grow and also compete globally, as mentioned in the interim budget," she said. The credit guarantee scheme for MSMEs in manufacturing will operate on the pooling of credit risks of such entities. "A separately constituted self-financing guarantee fund will provide, to each applicant, guarantee cover up to Rs 100 crore, while the loan amount may be larger," the minister announced in the Budget. The borrower will have to provide an upfront guarantee fee and an annual guarantee fee on the reduced loan balance. She also announced a new mechanism for facilitating the continuation of bank credit to MSMEs during their stress period. Sitharaman said that while being in the 'special mention account' (SMA) stage for reasons beyond their control, MSMEs need credit to continue their business and avoid getting into the NPA stage. "Credit availability will be supported through a guarantee from a government-promoted fund," she added. In another move to help MSMEs, the minister announced a new assessment model for credit to the sector. She said public sector banks will build their in-house capability to assess MSMEs for credit, instead of relying on external assessment. "They will also take a lead in developing or getting developed a new credit assessment model, based on the scoring of digital footprints of MSMEs in the economy," she added. The new assessment model, she said, is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria. It will also cover MSMEs without a formal accounting system. Mohammad Athar (Saif), partner and leader capital projects and infrastructure development, PwC India, said the credit guarantee scheme and <keyword id="22514802" type="General" weightage="20" keywordseo="e-commerce-export-hubs" source="keywords">e-commerce export hubs</keyword> for MSMEs will enable demand creation and boost India's aspiration of achieving USD 1 trillion in exports by 2030, driven by MSMEs. Sitharaman also announced that to enable MSMEs and traditional artisans to sell their products in international markets, e-commerce export hubs will be set up in public-private-partnership (PPP) mode. These hubs, under a seamless regulatory and logistic framework, will facilitate trade and export-related services under one roof. Vivek Jalan, Partner, Tax Connect, a multi-disciplinary firm, said, as requested by the trade and industry bodies and laid down by the Economic Survey, for MSME businesses, the compliance burden is also sought to be relaxed. Litigations will be reduced in the new <keyword id="22517694" type="General" weightage="20" keywordseo="Vivaad-Se-Vishwas-Scheme" source="keywords">Vivaad Se Vishwas Scheme</keyword>, he added. Rumki Majumdar, Economist, Deloitte India, said the credit guarantee schemes for MSMEs in the <keyword id="19955573" type="General" weightage="20" keywordseo="manufacturing-sector" source="keywords">manufacturing sector</keyword>, facilitating term loans for the purchase of machinery, and formulating packages to finance technology support to them will go a long way to providing access to finance and increasing investments, which have been key challenges in the sector.

FM announces credit guarantee scheme, other measures for MSMEs

<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

The <keyword id="47209" type="General" weightage="20" keywordseo="finance-ministry" source="Orion">Finance Ministry</keyword> on Wednesday expanded the scope of the ₹4.5 lakh crore <keyword id="9254513" type="General" weightage="20" keywordseo="Emergency-Credit-Line-Guarantee-Scheme" source="Orion">Emergency Credit Line Guarantee Scheme</keyword> (<keyword id="9254383" type="General" weightage="20" keywordseo="ECLGS" source="Orion">ECLGS</keyword>) to support micro, small and medium enterprises facing liquidity issues due to the COVID-19 pandemic. The validity of the scheme has been extended by another six months till March 31, 2022, the ministry said in a statement. The government has been receiving demands from various industry bodies and other stakeholders to extend the scheme to ensure continued support to eligible sectors/businesses, it added. "With a view to support various businesses impacted by the second wave of <keyword id="8764728" type="General" weightage="20" keywordseo="covid-19" source="Orion">COVID 19</keyword> pandemic, it has been decided to extend the timeline of ECLGS till March 31, 2022, or till guarantees for an amount of ₹4.5 lakh crore are issued under the scheme, whichever is earlier," the ministry said. Further, it said, the last date of disbursement under the scheme has also been extended to June 30, 2022. The modifications have been made in the scheme to enable support to businesses impacted by the second wave of COVID, it said, adding existing borrowers under ECLGS 1.0 and 2.0 would be eligible for additional credit support of up to 10 per cent of total credit outstanding as of February 29, 2020, or March 31, 2021, whichever is higher. Businesses who have not availed assistance under ECLGS (ECLGS 1.0 or 2.0), can avail credit support of up to 30 per cent of their credit outstanding as of March 31, 2021, it said. Businesses in sectors specified under ECLGS 3.0, who have previously not availed ECLGS, can avail credit support of up to 40 per cent of their credit outstanding as of March 31, 2021, to the maximum of ₹200 crore per borrower. Incremental credit can be availed within these limits by existing ECLGS borrowers whose eligibility increased because of a change in cut-off date to March 31, 2021, from February 29, 2020. Accordingly, "borrowers who have availed assistance under ECLGS and whose credit outstanding as on March 31, 2021, (excluding support under ECLGS) is higher than that on February 29, 2020, shall be eligible for incremental support within the cap stipulated under ECLGS 1.0, 2.0 or 3.0. "The modification introduced would ensure that businesses adversely impacted by the second wave of COVID-19 get enhanced collateral-free liquidity. Further, this provides much-needed support to all the ECLGS borrowers (which mainly consist of <keyword id="6358354" type="General" weightage="20" keywordseo="msme" source="Orion">MSME</keyword> units) in time for the busy / festival season," the ministry said. The scheme since its launch in May last year has extended relief to over 1.15 crore MSMEs and businesses, it said, adding it has provided support to eligible borrowers in meeting their operational liabilities and restarting their businesses in the wake of disruptions caused by the COVID-19 pandemic. As of September 24, 2021, loans sanctioned have crossed ₹2.86 lakh crore under the scheme and out of total guarantees issued, about 95 per cent of the guarantees issued are for loans sanctioned to MSMEs. The Finance Ministry in May expanded the scope of the ₹3 lakh crore ECLGS by including concessional loans to hospitals for setting up on-site oxygen generation plants. Besides, the validity of the scheme was extended by three months to September 30 and or till the amount was disbursed. The interest rate on these loans has been capped at 7.5 per cent, which means the banks can offer loans less than this ceiling. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/xiaomi-11-lite-ne-5g-with-120hz-display-snapdragon-778g-and-5g-support-launched-starting-at-26999/articleshow/86612169.cms">Xiaomi 11 Lite NE 5G with 120Hz display, Snapdragon 778g and 5G support launched starting at ₹26,999</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/some-domestic-flights-tickets-may-get-expensive-soon-as-government-mulls-removal-of-airfare-cap/articleshow/86611240.cms">Some domestic flights tickets may get expensive soon, as government mulls removal of airfare cap</a>

You Searched For "MSME credit" and got 7 results

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

PTI

Consumption loan portfolio expands 15% to Rs 90 lakh crore in FY24, notes CRIF report

PTI

After UPI, RBI set to launch Unified Lending Interface (ULI) for friction-less credit

ANI

FM announces credit guarantee scheme, other measures for MSMEs

PTI

Day 1

Day 1, January 18, 2023

Finance Ministry extends Emergency Credit Line Guarantee Scheme till March 2022

PTI

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