etrise top msmes ranking: ETRise Top MSMEs Ranking: Inaccurate that MSMEs don’t get finance easily, says banking official – The Economic Times

As per a report, since the launch of the scheme, more than 50,706 proposals have received in-principle approvals and 27,893 proposals got sanctioned as on 31 March 2019.
Dismissing notions that there is a lack of awareness on the government’s ‘PSB loans in 59 minutes’ scheme launched in November 2018, a top official from a PSU bank said that the scheme is well publicized, with many availing its benefits.

Speaking at an ETRise Dialogues panel discussion in Mumbai on ‘overcoming challenges regarding land, labour and capital’, Sanjay Narayan, Deputy General Manager, Union Bank of India said they have been receiving many applications through this portal.

Take part in ETRise Top MSMEs, India’s definitive ranking for Micro, Small & Medium Enterprises 

“Perhaps in the initial days, it was underpublicised. But,as on date, this scheme is well publicised, everyone knows about it and most of the MSMEs know about it. The rate of sanction for Union Bank of India is the highest in the industry. We sanction more than 61% of the proposals bidding through PSBs and rejection percent is just about at 36%. So it is not like it is not publicised or people are unaware of it,” he said.

This event was hosted under the aegis of ET Rise MSME Ranking, which will be a definitive ranking of businesses basis a rigorous evaluation of their performance across innovation, financial health, and financial growth.

Key industry stakeholders deliberated on some of the crucial aspects that could help MSMEs raise money in an intensely challenging and competitive economic environment.

The 59-minute loan scheme, launched by Prime Minister Narendra Modi, facilitated loans of Rs 1 crore in less than an hour or just 59 minutes. That limit has now been increased by the banks to Rs 5 crore to ease fund flow for MSMEs.

“This is a big initiative by the government to help MSMEs. They are bridging the gap between formal financial sectors which means the banks and the unorganised MSME sector. The misnomer in the market is that MSMEs don’t get finance easily,” he added.

Last year, MSME Minister Nitin Gadkari had stated that banks and financial institutions need to step up as far as faster disbursement of loans is concerned. He had pointed out to delays by financial institutions that led to a longer wait. The minister had also said last year that they would be reviewing the scheme further to make it more effective and address the financial needs of the MSME sector.

As per a report, since the launch of the scheme, more than 50,706 proposals have received in-principle approvals and 27,893 proposals got sanctioned as on 31 March 2019.

Narayan added that a digital footprint of any MSME will always improve its chances of getting financial assistance from the banks. “Credit rating systems and tracing of digital footprint by payment of GST, IT returns and other aspects such as account statements will definitely give impetus to MSMEs to have better access to bank finance. Once we are able to authenticate the transactions happening and see the GST returns, we get the confidence of financing them,” he stated.

ETRISE Dialogues has Union Bank of India as the Presenting Partner, MIDC and Caspian Debt as the Associate Sponsors and CARE Ratings as the Assessment Partner. IMC Chamber of Commerce and Industry was an Associate Partner for the Mumbai session.

The next session will be in Bangalore on January 28, 2020. To register, click here.

via etrise top msmes ranking: ETRise Top MSMEs Ranking: Inaccurate that MSMEs don’t get finance easily, says banking official – The Economic Times

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