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Informist, Saturday, Nov. 9, 2024

 

--Sitharaman: SIDBI to be present physically in every MSME cluster in 2-3 yrs 

--CONTEXT: Finance Minister Sitharaman at MSME Cluster Outreach Programme 

 

NEW DELHI – The Small Industries Development Bank of India will be present physically in every Micro Small and Medium Enterprises cluster in the next two to three years, Finance Minister Nirmala Sitharaman said on Saturday at the National MSME Cluster Outreach Programme. "SIDBI understands small business. SIDBI can deal with MSMEs credit requirements and tailor-make products for the credit requirements of MSMEs. That is why SIDBI's presence in MSME clusters will do immense benefits for the MSMEs," she said.

 

SIDBI will open 25 branches in MSME clusters this year, but gradually move to every cluster, Sitharaman said. "....the cost of loans the small businesses will take from them (SIDBI) directly will be far less than when that money is given to the public sector banks, and then forward lending. There can be that advantage that SIDBI gives," she said.

 

Stressing on the importance of MSMEs in the Indian economy, the finance ministers also highlighted the steps taken by the ministry to aid MSMEs in the Union Budget 2024-25 (Apr-Mar). In the Budget, the finance ministry announced a new programme specifically for MSMEs in the manufacturing sector to secure loans for equipment and machinery without collateral or third-party guarantees. The Budget also introduced a new assessment model for MSME credit. Banks will now build in-house capability to evaluate small businesses for credit instead of using external assessment.

 

The finance minister on Saturday virtually inaugurated six new branches and a refurbished branch of SIDBI, four Nari Shakti branches of Union Bank of India, and a learning centre of Canara Bank, during the National MSME Cluster Outreach Programme in Bengaluru, Karnataka.  End

 

Reported by Pratiksha

Edited by Ashish Shirke

 

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