With an effort towards giving fillip to the MSME sector, the Minister for Road Transport & Highways and MSME, Nitin Gadkari has given an approval for changes in the Interest Subvention Scheme guidelines for MSMEs. The Minister reviewed the functioning of the scheme and said that the changes are expected to boost productivity of MSMEs through access to credit at reduced cost.
Nitin Gadkari also highlighted the government’s commitment for enhancing credit to the MSME sector and added that the implementation of the scheme is being closely monitored to help MSMEs get incremental credit of up to Rs 1 crore with an interest subvention of 2 per cent.
The modifications to the scheme include settlement of claims based on internal or concurrent auditor certificate and submission of statutory auditor's certificate once by June 30, 2020; and acceptance of claims in multiple lots for a given half year by eligible institutions.
Meanwhile, the modifications in operational guidelines carried out are based on suggestions made by various stakeholders, including banks and lending institutions who had brought to light operational difficulties that were hindering a smooth roll-out of the scheme.
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