FM Sitharaman announces ₹5.75 lakh crore loan target for MSMEs through Public Sector Banks

Union Finance and Corporate Affairs Minister Nirmala Sitharaman announced today that a target has been set for Public Sector Banks to lend 5.75 lakh crore rupees to MSMEs for this financial year. The Minister was speaking at the National MSME Cluster Outreach Programme organised by SIDBI in Bengaluru. The Finance Minister said the Public Sector Banks’ lending to MSMEs grew by 9.2 per cent, as against 25 per cent by private banks and 39 per cent by NBFCs. The Minister further informed that the proposed new credit guarantee scheme, which ensures term loans of 100 crore rupees to MSMEs, will go before the Cabinet soon. This will ensure term loans to MSMEs without any collateral or third-party assurance. Nirmala Sitharaman said that the Government procurement policy, which makes 25 per cent of purchases from MSMEs mandatory through the GEM portal, has helped generate demand. Union Minister of State for Finance Pankaj Choudhary, Union Minister of State for MSME Shobha Karandlaje, senior bank officials, industry bodies, and entrepreneurs were present on this occasion.