MSME inclusion will enable 8 cr traders to obtain loan under PSL category, Mudra scheme
According to the decision of Prime Minister Narendra Modi for inclusion of 8 crore traders of the country under MSME will derive greater financial benefits from the Banks in terms of not only obtaining loan from Banks under Priority sector lending but even loans under Mudra will also get accelerated. This landmark decision of the PM Modi speaks the fact that traders are now on priority of the Union Government said Praveen Khandelwal, Secretary General and Suresh Sonthalia National Secretary of the Confederation of All India Traders (CAIT) which was spearheading a national movement past two years for inclusion of traders under MSME. This decision of PM Modi will take out the business community from the current great financial crisis. It will give direct benefit to more than 8 crore traders of the Country, said the CAIT.
Khandelwal and Sonthalia said that falling under definition of MSME will enable the traders to obtain Udyam Aadhar registration which will be construed as a base document for obtaining loans under PSL scheme or Pradhanmantri Mudra Yojna Scheme. The interest rate on loan under PSL is generally lower to 1% to 1.5% in comparison to interest charged on regular loans. Every Bank is under obligation to give 6% of its total loans to PSL category. Under Mudra, traders can get loans up to Rs.10 lakhs without any collateral security. Till 2017, traders were under ambit of MSME but by an order, they were taken out from MSME category in 2017 and till that time, the CAIT was engaged in talks with the Government at different levels to restore MSME status to the traders.
Sonthalia informed that CAIT has issued an advice to more than 40 thousand trade bodies across the Country to prompt their respective members to obtain Udyam Aadhar registration from MSME portal. The CAIT has also decided to set up MSME Help Centres at its Headquarter in New Delhi and also prominent cities of the Country to provide immediate assistance to traders in case they encounter any problem in Udyam registration or in obtaining loans from the Banks. The CAIT is also writing letters to Managing Directors of all Banks to issue an advisory to their branches to ensure that henceforth the traders may not find any difficulty in obtaining requisite loans either under PSL category or Mudra scheme.