Credit to MSEs in Haryana grows 47%

Credit advanced by banks to micro and small enterprises (MSEs) in Haryana has grown by 47 per cent — from Rs 15,596 crore at the end of September 2011 to Rs 22,951 crore at the end of September 2012.

A review of bank loans given to the MSE sector reflects year-on-year growth of 47 per cent, compared to the target of 20 per cent. In fact, the number of MSEs which were provided credit during this period also grew by 16 per cent, against the target of 10 per cent.

However, the share of advances to micro enterprises was just 37 per cent at the end of September 2012, against the stipulated target of 60 per cent to be attained by March 2013. Banks in Haryana have been asked to gear up to achieve the target.

The government figures also reveal that collateral-free loans of up to Rs 10 lakh provided to MSEs were only 62 per cent of the stipulated target for such loans. The state government has told banks in the state to focus on 19 identified clusters of MSEs in the state for prioritised lending.

While some clusters like rice milling and agricultural implements in Karnal, stone crushing and engineering clusters in Faridabad and the plywood industry cluster in Yamunanagar have received adequate credit, others need to be financed in keeping with the stipulated targets, the state government has stressed.