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MSME Minister Kalraj Mishra Asks Banks To Make Easy Finance Available To Micro Enterprises

Union Micro, Small and Medium Enterprises Minister Kalraj Mishra on Friday ( 20 November) said that the Centre is willing to do everything to safeguard the interest of local entrepreneurs

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Union Micro, Small and Medium Enterprises Minister Kalraj Mishra on Friday ( 20 November) said that the Centre is willing to do everything to safeguard the interest of local entrepreneurs, which includes becoming collateral security for banks on their behalf.

He said that due to the risk involved with the repayment of loan amount, banks hesitate to provide financial assistance to marginal entrepreneurs. "We are not opposing banks favouring big industries but they should also help local manufacturing. If they find granting loans to MSMEs risky because of concrete collateral, we are ready to provide collateral facility to banks on the behalf of small entrepreneurs," said Mishra.

He also said that ministry is looking to come up with incubation centre in many districts across India to assist startups with technical and manufacturing assistance while speaking in the ongoing Resurgent Rajasthan Summit in Jaipur.

The minister also announced several reforms to improve the health of MSME's. Major ones being providing Rs 10,000 crore to startups as VCs, easing regulation involving the registration of startups and coming up with cluster development centre across the nation.

Around 82 per cent of banks lending is provided to big enterprises whereas MSME's share in the bank lending only accounts 18 per cent.

Rajasthan Chief Minister Vasundhara Raje said that MSMEs in an integral part of nation building and they should be given more financial opportunity. She urged the union ministry to make some changes.

Raje, who earlier served the ministry during Atal Bihari Vajpayee's reign said that MSME sector is loaded with multiple problems and challenges which needs to be sort out quickly. Medium sector which falls under the Rs 5-10 crore category which is most important in proving employment is neglected the most.

MSME in India contributes 45 per cent in the nation's total output and provided jobs to around 800-900 million people. Significant chunk produced form MSME's is exported to foreign nation's and accounts 40 per of the country's total exports.