Bhubaneswar: The sub-committee of the State Level Bankers’ Committee on MSME and Skill Development Wednesday asked the bankers not to ask for collateral security while extending loans up to `10 lakh under Prime Minister Employment Generation Programme (PMEGP).
Chairing the meeting of the panel here, Micro, Small and Medium Enterprises (MSME) secretary LN Gupta said as per the master direction of RBI on lending to MSME sector, banks may also increase the limit to dispense with the collateral requirement for loans up to `25 lakh on the basis of track record and financial position of the MSME units.
Banks were further told to follow the guidelines of Centre and not to ask for collateral security for loans up to `2 crore covered under Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE).
During the review, it was revealed that subsidy of `38.89 crore has been disbursed to 1,709 MSME units under PMEGP during the current year up to January 15.
The sub-committee has advised the banks to expedite disbursement of assistance in respect of already sanctioned cases and decide the pending applications latest by February 15, 2018. Further banks were requested to advise each of their branches to consider sanction of at least three to five PMEGP cases with a view to boost achievement under programme, sources said.
According to sources, so far 230 bank branches have been declared MSME specialised branches for the purpose of giving advance to MSMEs. The banks, which are yet to declare MSME specialised branches for all the districts, were asked to do so by the end of this month.
The banks have distributed loans of `7,436 crore to 25.24 lakh beneficiaries under MUDRA scheme during the current year so far.
The panel has asked the banks to sanction more loans under Kishore and Tarun category. Banks were further advised to pro-actively finance clusters, startups and ventures promoted by skilled youth.
PNN
