Banks are committed to meet financial requirements of micro, small and medium enterprises (MSMEs) and there is no shortage of funds for bankable projects, said Sharad Sharma, Managing Director, State Bank of Mysore (SBM).
“Despite their important role in economy, MSMEs have remained largely ignored. It was a matter of concern that a large number of small and micro units continue to depend on non-formal sector for meeting their financing requirements,” Sharma said after inaugurating a convention on micro, small and medium enterprises, organised by Assocham.
Speaking on the theme of the convention, “Funding MSMEs to stimulate growth”, he said there was a need to enhance coverage under the CGTMSE scheme, which is being implemented through SIDBI.
“We need to enhance coverage under the scheme so that more and more micro and small enterprises may be helped. Under the scheme, banks extend credit without asking for any collateral,” Sharma said.
He pointed out that very often small enterprises are not able to prepare and present their financial statements in time thereby creating problem for bankers while assessing demand for enhanced financing requirements. He urged entrepreneurs to ensure that their documents and statements are furnished in time to avail timely credit from banks.
Responding to concerns raised by delegates, Sharma said any loan application made to commercial banks is not rejected at the first stage itself without proper examination.
Speaking on the occasion K Sathianandan, General Manager, SIDBI said that SIDBI provides long term finance to MSMEs to meet their requirements on very nominal terms.
Highlighting the fact that SIDBI was the only Development Bank available in the country for helping small and medium units, Sathianandan said that SIDBI was committed to provide crucial support to entrepreneurs. He urged delegates to take advantage of various schemes available for small entrepreneurs.
The Convention was organised to highlight the various options available for meeting financing requirements of MSMEs. Delegates at the Convention highlighted problems faced by them in raising finance from banks while bankers explained the constraints faced by them while appraising loan applications.
In his address P Ravikumar, Zonal General Manager, NSIC gave an overview of schemes offered by NSIC to help small and micro enterprises.
J Crasta, Co-Chairman, Assocham Southern Regional Council said that the industry was looking forward to new policy for MSMEs. He said only 22 per cent of credit demand of MSMEs was met through formal sources. Rest was being met either through personal sources of entrepreneurs or through informal sources.
