A committee constituted by the Reserve Bank of India (RBI) has recommended that limit for collateral-free lending should be increased to Rs 20 lakh for micro, small and medium enterprises (MSMEs) and self-help groups (SHGs).
The committee has also recommended revision of loan limit sanctioned under the Pradhan Mantri MUDRA Yojana (PMMY) to Rs 20 lakh from Rs 10 lakh, Union Minister for MSMEs Nitin Gadkari said in written reply to a question in Lok Sabha on Thursday.
MSMEs employ 11.1 crore people and are the largest provider of jobs after agriculture. In another reply, Gadkari said 22.83 lakh MSMEs were registered on Udyog Aadhaar Portal from March 2018 to March 2019.
The credit flow to MSME sector by all scheduled commercial banks totalled Rs 14.97 lakh crore in March 2019 compared to Rs 11.49 lakh crore in March 2018 and Rs 10.7 lakh crore in March 2017.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app