Loans sanctioned in 1,33,448 cases under the 59-minutes Scheme

Loans sanctioned in 1,33,448 cases under the 59-minutes Scheme to MSME

Out of 2,00,660 applications which have been submitted, 1,59,583 applications for loans on the psbloansin59minutes.com portal was accorded in-principle approval from the time of the launch of the portal. Sanctions were made with regard to 1,33,448 cases. Bank wise details of loans accorded in-principle approval as well as sanctioned by banks from the time of the launch of the portal as on 17th July 2019.

Government and RBI took several steps to make certain access of credit to MSMEs, which inter-alia, consist of, advice to every Scheduled Commercial Banks (SCBs) for achieving a 20% year-on-year growth in credit to Micro and Small Enterprises (MSEs), allocation of 60% of the MSEs advances towards the micro-enterprise accounts, a 10% annual growth in number of micro-enterprise accounts, additional working capital limit in the direction of meeting the requirements arising as a result of unforeseen or seasonal increase in demand, adoption of one cluster, operationalising at least one specialised MSME Branch in each district, easy computation of working capital of MSE units to make it minimum 20% of the projected annual turnover of the unit for borrowal limits up to Rs.5 crore, setting up of Trade Receivables Discounting System (TReDS) towards solving the concern of delayed payment of MSMEs, etc.         

Furthermore, the Government launched a “Support and Outreach Programme for MSMEs” on 2nd November 2018. The program comprised initiatives for MSME on access towards credit for example through the psbloansin59minutes portal, access to market, technology up-gradation, simplicity of doing commerce, social security for MSME sector workers, etc.

Note: The data given above comprises of data of Private Sector Banks

What is MSME?

For Enterprises occupied in the manufacture or production, processing or preservation of goods, the definition is:

Micro-Enterprise: An enterprise where investment in the plant as well as machinery doesn’t surpass Rs.25 lakh.

Small Enterprise: An enterprise where the investment in the plant as well as machinery is above Rs. 25 lakh but doesn’t surpass Rs. 5 crore.

Medium Enterprise:  An enterprise where the investment in the plant as well as machinery is above Rs.5 crore but doesn’t surpass Rs.10 crore.

For the above-mentioned entities, investment in plant and machinery is the original cost which excludes land as well as building and additional items as specified by the Ministry of Small Scale Industries.

For Enterprises occupied in giving or rendering of services, the definition is:

Micro-Enterprise: An enterprise where the investment in equipment doesn’t surpass Rs. 10 lakh.

Small Enterprise: An enterprise where the investment in equipment is above Rs.10 lakh but doesn’t surpass Rs. 2 crores.

Medium Enterprise: An enterprise where the investment in equipment is above Rs. 2 crores but doesn’t surpass Rs. 5 crore.

Author:

eStartIndia Team