5 aug r5

Advertisement

 

 

Credit & Finance: There has been a positive change in the outlook & approach of our financial institutions towards SMEs. Banks have now entered the field of extending credit facilities to the small-scale industrial units. The lead bank scheme has helped a lot of small units to obtain loan from the banks. The RBI has the credit guarantee scheme to help small industries. According, to the scheme, the Reserve Bank takes upon itself the role of guarantee organization for the advances which are left unpaid. The state director of industries also provides loans to SMEs.

The Nayak Committee had made a number of recommendations to help SSI with regard to credit & finance. Most of the recommendations were accepted by SBI.

Improving Credit to SME.: The following steps are taken to improve credit to SSIs;

  • Composite loan scheme limit enhanced to Rs 25 lakhs.
  • For loans upto Rs. 5 lacks the collateral security requirement has been dispensed with.
  • RBI has constituted a committee to monitor the flow of credit to SSI under the chairmanship of its Deputy Governor.

Guarantee Fund (Scheme) for SMEs: The Credit Guarantee Scheme has been launched to provide guarantee for loans upto Rs. 25 lakhs extended by Commercial Banks, selected well performing Regional Rural Banks & other financial institutions without any collateral including third party guarantee.

Providing Credit Linked Capital subsidy of 12% against loans for technology upgradation in specified industries.

 

Advertisement
The following two tabs change content below.
0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

*

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2019 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account