To expedite disbursal of loans to micro, small and medium enterprises (MSMEs), the government is considering setting up Financial Facilitation Centres.
"The Ministry of MSME is considering setting up of Financial Facilitation Centres (FFCs) through NSIC at identifiable places for the benefit of MSMEs in accessing credit," Minister of State for Micro, Small and Medium Enterprises Giriraj Singh said in a written reply to the Lok Sabha.
The minister further said the role of FFCs will be to disseminate information about MSME schemes of banks/financial institutions, create their awareness among MSMEs, operate as a nodal point and coordinate with the banks for speedy disposal of credit proposals.
The Ministry of MSME and SIDBI had set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitating credit flow to the MSE sector without the need for collaterals or third-party guarantee.
The main idea is the lender should give importance to project viability and secure credit facility purely on the primary security of the assets financed.
