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HomeUncategorizedCredit line without collateral for MSMEs top priority: MSME body chairman

Credit line without collateral for MSMEs top priority: MSME body chairman

Kolkata: Micro, Small & Medium Enterprises (MSME) have been a major source of employment and revenue for India, yet professional assistance and credit aid is out of reach for many, a top MSME Development Forum official has said. MSME Development Forum Chairman Rajnish Goenka said, “Credit line without collateral for MSMEs is a top priority.” He was speaking at the launch of West Bengal MSME Development Forum, at a Kolkata hotel last week.

“Taking a loan is easy, but to service and pay it back is difficult. Many of them have a habit of accepting private financing from relatives, which shows that there’s a need to create friendly relations between banks and MSME players,” he said.

Speaking about the resistance to accepting loans from banks, he added, “Banks are a more reliable source of credit and can’t be left uninvolved in the journey of expansion.”

Also read: RBI lifts restriction on HDFC Bank’s business generating activities

MSMEs are expected to play a major role in India’s vision of becoming a USD 5 trillion economy, as 6.3 crore such establishments account for 30 percent of the country’s nominal GDP.

With a view to bolstering the contribution of West Bengal MSME, a new team of MSME Development Forum for the state was introduced alongside the appointment of Dr Mamta Binani as president of the MSME Development Forum, West Bengal.

Dr Binani said, “Our immediate goal is to create an accountable value system, provide vocational training to 2,000 individuals, placement for 1,000 people, and engage the use of technology in everything we do.”

She will lead a team of 40 new executive team members to promote and conduct awareness programmes that boost MSME in West Bengal. “The motto of the West Bengal chapter is to give information, support, advocacy for start-ups, women entrepreneurs, Scheduled Caste start-ups, establish Udyam by new policy developed by government,” she said.

India Blooms News Service

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