The agenda of the meeting is to push up advances and timely credit to the SME sector.
The sector at present has a fiancé demand of over Rs 32 lakh crore, out of which only Rs 6 lakh crore debt has been financed through the formal banking setup of the country. The other enterprises raise financing through informal channels.
An Assocham survey said, “Lack of adequate finance due to shortage of organised lending from banks and other formal sources together with absence of transparency regarding their financial condition is proving to be a stumbling block in growth of MSMEs in India.”
Under the credit guarantee scheme, the Government has facilitated collateral free loan to over 11 lakh MSMEs with a total sanctioned loan amount of Rs 54,322 crore, the Minister said.
The Hindu Business Line quoted the minister saying, the Ministry was also following up with the Reserve Bank to achieve 20 per cent year-on-year growth in credit to MSMEs, as recommended by the Prime Minister task force.
It was only yesterday the RBI Deputy Governor KC Chakrabarty said that the banks must lose the idea that MSMEs are risky entities to finance and exhorted them to fill the credit demand.