The Centre is confident of doubling credit guarantee on loans for micro and small enterprises to Rs. 40,000 crore in 2018-19, and increase the total lending to the sector to Rs. 55,000 crore with the inclusion of NBFCs in the scheme for the first time, AK Panda, Secretary, Ministry of Micro, Small and Medium Enterprises, said.
“We intend to increase credit guarantee to at least Rs. 40,000 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme. This would be double the Rs. 19,000-20,000 crore of credit we have been guaranteeing annually over the past few years. The increase is also due to the government’s decision to rope in NBFCs which mainly lend to micro enterprises,” Panda said, at a press conference to announce the celebration of UN SME Day on June 27.
The Secretary pointed out that apart from increasing the credit guarantee amount, the government also announced in the Budget the scaling up of the Mudra scheme providing refinance support to banks/MFIs for lending to micro units and increasing subsidy under Prime Minister Employment Generation Programme.
On the upcoming UN SME Day celebrations, Panda said apart from the address by the President of India, there would be intense discussions between stakeholders to chalk out a strategy for better growth of the sector.