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MSME minister Kalraj Mishra asks banks to make easy finance available to micro enterprises

NEW DELHI: MSME Minister Kalraj Mishra today asked banks to make available easy finance for micro enterprises under the Prime Minister’s Employment Guarantee Programme (PMEGP).

The issue was discussed during a meeting with bankers, Khadi & Village Board and State Industry Department in Mumbai.

The Minister said the banks should avoid delay in sanctioning of loans.

“Timely sanction of the projects will result in getting subsidy to the beneficiaries without any hurdle,” an official statement quoting Mishra said.

He also asked the banks to ensure that maximum benefits of the PMEGP scheme are provided to women, SC/ST and unemployed youth.

“All efforts should be made so that the scheme should reach the grass root level which will fulfil the dream of ‘Make in India’ of our Prime Minister,” he added.

Mishra said that some instances have come to the notice that despite clear cut guidelines given by RBI, bankers are insisting to the small beneficiaries for collateral security in case of projects up to Rs 10 lakh.

He asked the banks to give clear directions to their respective branches that they should adhere to the RBI guidelines.

Prime Minister’s Employment Generation Programme (PMEGP), is a flagship programme of the government for generating employment opportunities by setting up micro enterprises in the rural as well as urban areas.

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Categorized as Miscellaneous

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