Bhubaneswar: The MSME additional chief secretary L.N. Gupta, who chaired the State Level Bankers’ Committee (SLBC) sub committee meeting, here on Wednesday, told the bankers not to ask for collateral security in the case of loans up to Rs 10 lakh extended to units in the MSE Sector including the units financed under the PMEGP Programme.
The sub committee meeting reiterated that as per the January 21st, 2016 Master Direction of RBI on lending to MSME sector, banks may on the basis of good track record and financial position of the MSME units increase the limit to dispense with the collateral requirement for loans up to Rs 25 lakh. Banks were further told to follow the guidelines of government of India for not to insist upon collateral security for the loans up to Rs 2 crore covered under Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE).
From the review, it emerged that during the current year up to January 15, 2016 a total of 1,709 units have been disbursed with margin money (subsidy) of Rs 38.89 crore under PMEGP Programme. The sub committee advised the banks to expedite disbursement of assistance in respect of already sanctioned cases and decide the pending applications latest by February 15, 2018. Further banks were requested to advise each of their branches to consider sanction of at least 3 to 5 PMEGP cases with a view to maximize achievement under programme.
The sub committee was told that so far 230 bank branches have been declared MSME Specialized Branches for the purpose of giving advance to MSMEs. The banks, which have yet to declare MSME specialized branches for all the districts, were asked to do so by 31st January, 2017.
As regards, MUDRA, the convenor, SLBC informed the sub committee that the loans of Rs 7,436 crore have been disbursed to 25.24 lakh beneficiaries during the current year till date. The sub committee asked the banks to sanction more loans under Kishore and Tarun category.
The sub committee found that only 13 banks have conducted Stress Committee meetings to consider the cases of potentially viable sick units for their revival. The remaining banks were asked to hold Stress Committee meetings early. Banks were advised to pro-actively finance clusters, startups and ventures promoted by skilled youth.
The meeting was attended by the SBI DGM( MSME), SLBC convenor UCO Bank, director of industries, Odisha, representative of RBI, all the general managers of District Industrial Centres and controllers of different banks.