MSMEs Will Also Have A Rating, It Will Be Easy To Take Loans, These Specials Benefits Will Also Be Available
Similar to big companies, now the micro, small and medium units (MSMEs) will also have ratings. This step will make it easier for them to make financial arrangements for their business and foreign investors will be able to infuse capital into them. A plan has been prepared to encourage MSMEs in green sectors like solar, electric vehicles, biogas. Financial institutions will give loans to MSMEs working in the green sector on a priority basis. union MSME Minister Nitin Gadkari gave this information in a program organized by Dainik Jagran and the Chamber of Indian MSME (CIMSME) on Tuesday.
Gadkari said that action should also be taken against the officials who delay in taking decisions on loan applications of MSMEs. The Ministry of MSME is also looking for a permanent solution to overcome the problem of payment to MSMEs. The Union Minister said that MSMEs can be rated based on GST and Income Tax records. This can be done with the help of Chartered Accountants (CAs) in all districts. CAs will rate MSMEs in a prescribed manner.
Ratings will make it easier for MSMEs to get loans from financial institutions. Also present in the program SIDBI (Small Industries Development Bank of India) Chairman and MD S. Raman and Mukesh Mohan Gupta, President, Chamber of Indian MSMEs, to prepare benchmarks for rating MSMEs. The dashboard will be created to collect all the schemes of the Ministry in one place. The dashboard will also be linked to all banks and financial institutions.
Gadkari said that the decision on the loan application of MSMEs should be taken by the officials within the stipulated time. He said that in many loan cases; it took six seven years to decide. On the dashboard of the ministry, it will be known why the loan application of an entrepreneur was rejected. Gadkari said that the officers should prepare simple schemes instead of complex schemes so that the entrepreneurs can get benefits easily. A lot of potentials is emerging in the green sector and because of the entry of MSMEs in these sectors, employment will be generated and the cost of business will also reduce.
On the occasion, Raman told that SIDBI s preparing to connect small or micro scale businessmen in a digital way to provide them with loan facility. These businessmen take loans personally in villages or in small towns at a 30-40 per cent rate. SIDBI will help their businesses to avail loans at very low rates through Fintech based on digital data.
Gupta added CIMSME is organizing a school to prepare entrepreneurs so that the youth of the country can take advantage of this scheme and become job creators. At present, the contribution of MSMEs in the country’s GDP is 30 per cent, which has been targeted to increase to 40 per cent. Similarly, the target is to take the contribution of MSMEs to 60 per cent in exports from 48 per cent.