Amid various structural reforms along with the government’s decision to allow NBFCs to lend, MSME secretary A K Panda has expressed confidence that the credit guarantee to the micro and small enterprises (MSEs) sector would double to over Rs 40,000 crore during 2018-19 under the Credit Guarantee Fund Trust for MSE from almost Rs 19,000-20,000 crore reported in the last 2-3 years. Besides, he added that the efforts will also be taken to touch it around Rs 50,000 crore.
MSME secretary expressed need of timely and low-cost credit for the micro, small and medium enterprises sector. Panda further said that the different ways to utilise non-budgetary instruments will be explored by the government, adding that the growth rate of non-performing assets (NPAs) in the micro and small sector is much lower than the other sectors.
He underlined the improved situation after the finance ministry processed GST refunds due to exporters. He also pointed out a decision taken by the Union Cabinet earlier to provide loan assistance of up to Rs 1 crore to entrepreneurs as a second dose under the Prime Minister's Employment Generation Programme and noted that this move will act as a huge incentive for those setting up new units.