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.
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