In order to find a way forward to support MSMEs, Minister of MSME Nitin Gadkari and Finance Minister Nirmala Sitharaman with senior management of all Banks, have held a meeting and reviewed some of the key schemes of Ministry of MSME which generate large number of jobs with low capital investment.
Discussions were also held with Banks on increasing the reach of Credit Guarantee scheme. Government has set a target of increasing credit guarantee to Rs 50,000 crore under this scheme, which is a jump of about 67% over the last year. The Banks brought out that there is a huge demand under this scheme and they are confident of achieving this target.
One of the major challenges faced by MSMEs is in restructuring stressed loans due to sector related problems or issues with the large industries to which they supply. Finance Minister and Minister of MSME emphasized upon the need for providing support to the MSMEs by suitably restructuring the stressed loans at an early stage.
All CMDs of the Banks agreed to support MSMEs in restructuring their stressed loans. Further they confirmed that in accordance with the Budget announcement, the cut-off date for restructuring of loans to MSMEs has been already extended up to December 31, 2020.