According to government figures, there are 60 million MSMEs in India and millions of these entrepreneurs are running the business alone. Entrepreneurs associated with the MSME sector will now be able to get loans up to 25 lakh easily. Recently, the new system of RBI is going to give this benefit to small entrepreneurs.
With the new RBI arrangement, banks will be able to give loans to MSMEs out of that reserve cash and banks will also earn from getting interested in that loan. However, an entrepreneur will not get a loan of more than Rs 25 lakh. Federation of Indian Small Medium Enterprises (FISME) Secretary-General Anil Bhardwaj said that with this new arrangement banks will be able to easily lend loans up to Rs 25 lakh to MSMEs.
They all fall under the category of micro or micro-entrepreneurs. The new system of RBI will mainly benefit these micro-entrepreneurs. MSMEs can also take fully government-guaranteed loans until March 31, which was announced in May last year.
The entrepreneurs said that according to the new RBI provision, banks can give loans up to Rs 25 lakh to MSMEs out of their cash reserve ratio (CRR). Banks are required to hold cash with RBI in a fixed ratio. They do not get interested in this either.
It is noteworthy that a large number of people get employment in the MSME sector. Because of this, the government takes timely steps to promote this sector.
