Banks should grant loans to help rural poor: Minister

Union Minister for Small and Medium Industries Mahavir Prasad has asked the bankers to provide maximum credit facility to the unemployed rural youths.

He said the small and medium industries sector can play a major role in removing unemployment, on the sidelines of inaugurating the bankers' meet on 'Credit to Micro and Small Industries' organised by the Small Industries Development Bank of India (SIDBI) and the central government at Gorkahpur.

"Bankers should provide maximum credit to those interesting in setting up micro and small industries in the rural areas. The Credit Guarantee Trust, set up at the initiative of the Union government, can be of great help for the rural poor willing to start their own business," Malla said.

Speaking on the occasion, SIDBI Chairman RM Malla said currently there are 13 million micro and small industries in the country, which will soon be doubled or tripled as the bankers are taking keen interest in promoting this sector.

He said due to the dedicated efforts of the bankers, the micro and small industries sector has achieved a growth rate of 25 per cent as against the 20 per cent target set by Union Finance Minister P Chidambaram.

"After the Trust has come into existence, the banks are providing credit to the micro and small entrepreneurs without collateral," informed Malla.

He said all the bank branches have been instructed to provide loans up to Rs 5 lakh without collateral to the entrepreneurs.