Msme Lending

Govt to decide soon on Rs 100 crore credit guarantee scheme for MSMEs: FM

Union Finance Minister Nirmala Sitharaman on Saturday said that the Rs 100 crore credit guarantee scheme for MSMEs which was announced in the budget this year will soon be placed before the Union Cabinet for approval. Highlighting the five announcements made in this budget for MSMEs she said, "the introduction of a special credit guarantee corpus to help MSMEs will be very helpful during the time of distress...." "The Rs 100 crore credit guarantee scheme will soon be placed before the cabinet. Immediately after getting approval from cabinet, the scheme that will provide guarantee through MSME ministry and banks will be implemented," the Union Finance Minister said, while attending the National MSME Cluster Outreach Programme here. "The grievance, which has been there for a very long time, is that the MSMEs can get working capital from banks but they don't get term loans, loans for plant and machinery. Now the guarantee will be provided under the scheme," she explained. Further stat

Budget 2024: MSME sector eyes double loan limit under MUDRA to Rs 20 lakh

The finance ministry in the forthcoming Union Budget needs to double the loan limit to Rs 20 lakh under the MUDRA Yojana, and expand the credit guarantee cover for unsecured loans for MSMEs from Rs 2 crore to Rs 5 crore. MSMEs also want incentives from the government to help them sell products globally. Finance Minister Nirmala Sitharaman will present the Union Budget for the current fiscal on July 23 in the Lok Sabha. On expectations from the Budget, Navin Saini, chief business officer (Retail & MSME), Arka Fincap said the government will continue its agenda to provide a strong foundation for MSMEs, bolstering their growth. "To achieve this, they should consider increasing the loan limit of the Pradhan Mantri MUDRA Yojana (PMMY) scheme from Rs 10 lakh to Rs 20 lakh and expanding the credit guarantee cover for unsecured loans for MSMEs from Rs 2 crore to Rs 5 crore. "These measures will provide MSMEs with greater access to necessary financial resources, enabling them to thrive and

Vacuum for Indian MSMEs seeking growth finance: Nishu Malhotra, ADM Capital

In India, shift to private credit, Nishu said, started before the Covid era, driven by regulatory reforms including the Insolvency and Bankruptcy code, Real Estate Regulatory Authority (RERA) Act etc.

South Indian Bank targets 11-12% deposit growth in FY25: MD & CEO Seshadri

The bank will focus more on growing its retail and micro, small and medium enterprises (MSME) portfolio

Paytm expands loan distribution business, targets personal, merchant loans

Paytm said that it would continue to collaborate and add banks and NBFCs as lending partners for its loan distribution business

Five MSME lending products complete test phase under RBI's sandbox cohort

Products of the entities that completed the test phase were evaluated based on mutually agreed test scenarios and expected outcomes

Religare asks police to probe allegations linked to previous leadership

Religare provides loans to small and mid-sized businesses and also has health insurance and broking services units

Govt accepts over 10,000 MSME claims worth Rs 256 crore for refunds

The government has accepted more than 10,000 claims of MSMEs involving refunds worth Rs 256 crore under a dispute resolution scheme Vivad se Vishwas-I. Under the scheme, MSMEs could claim a refund of 95 per cent of performance or bid security and liquidated damages forfeited by government departments and public sector entities during the COVID-19 period. The scheme, announced in 2023-24 Budget, opened on April 17 and the last date for submission of claims for relief on the GeM portal was July 31. "In a major relief to the Micro, Small and Medium Enterprises (MSMEs), various Ministries/Departments of the Government of India have accepted more than 10,000 claims of MSMEs under Vivad se Vishwas -I scheme aimed at providing relief to MSMEs for the COVID-19 Pandemic period. This has led to grant of more than Rs 256 crore to MSMEs and increased flow of bank credit through freeing up of guarantees," a finance ministry statement said. The highest relief of Rs 116.47 crore has been granted

Pace of credit to MSMEs moderates in April: Reserve Bank of India

The housing segment showed a steady growth at 14.3 per cent in April 2023 against 13.7 per cent, RBI said

RBI has a responsibility to promote sustainable economic growth: DG Rao

Says banks have a role to play by making finance available to incentivise sustainable initiatives

Tamilnad Bank to keep focus on small biz lending, open 25 new branches

RBI in October 2022 lifted its three-year ban on lender from opening new branches

Shadow lender Trucap Finance buys out retail MSME book of EZ Capital

MSME-focused shadow lender Trucap Finance has announced two deals -- buying out the retail MSME book of the Jalandhar-based EZ Capital in a share swap deal and a Rs 105 crore funding in a mix of equity and debt from the Mauritius-based fund Zeal Global. The city-based NBFC has a loan book of around Rs 500 crore spread across unsecured small-ticket MSME business loans (Rs 270 crore) and Rs 230 crore of gold loans. Its branches are spread across Maharashtra, Delhi-NCR, MP, Goa, Gujarat, and Rajasthan. The deal with EZ Capital involves taking over the Rs 65-crore MSME retail book along with over 100 people and 10 branches in Punjab and Delhi-NCR, in a share swap deal wherein the promoters of EZ will get 931 shares of Trucap for their every 711 shares. EZ will own 17 per cent of Trucap, Rohan Juneja, the managing director & chief executive of Trucap told PTI on Tuesday. On funding from Zeal Global, he said the fund is picking up an 8.25 per cent stake in the company for Rs 80 crore ...

One in every six MSME loans under ECLG scheme turned into NPAs: Report

The National Credit Guarantee Trustee Company Ltd (NCGTC) declared that 1.6 million accounts or 16.4 per cent of the total 9.8 million loans disbursed have been converted to NPAs

Banks' asset-quality risk to be moderate after RBI rate hike: Fitch Ratings

'Mounting repayment pressure for some borrowers amid India's interest rate hikes, particularly for micro, small and medium-sized enterprises, will test banks' loan underwriting quality'

What is Udyam registration for MSMEs?

Loan demand of micro, small and medium enterprises (MSMEs) is rising. But how do one register to set up an MSME? For this the govt had launched an online system called Udyam. Let us know more about it

U GRO Capital appoints Smita Aggarwal as additional independent director

U GRO Capital's AUM had risen to Rs 2,589 crore and its branch network stood at 82

Govt extends ECLGS for MSMEs till Mar 2023; boost for hospitality, aviation

The enhanced limit is subject to a maximum of Rs 200 crore per borrower

Indifi Tech says its online loans for small businesses grew 200% YoY

Indifi said it registered a 100 per cent growth in the number of loans disbursed from December 2020 to December 2021

SBI, U GRO Capital to disburse up to Rs 500 cr to MSMEs by March 22

SBI has onboarded U GRO Capital as its first co-lending partner for its Sanjeevani programme to finance MSMEs

HDFC Bank to ICICI, 8 banks recast exposures worth Rs 27,000 cr in OTR 2.0

The country's largest private lender HDFC Bank had the highest share in restructuring at Rs 17,395 crore, followed by another private lender ICICI Bank at Rs 4,156 crore