Press Information Bureau: July 31, 2015
To facilitate an easy access to finance by MSMEs, the Government/RBI has:
(i) launched Credit Guarantee Fund Scheme for Micro and Small Enterprises to provide guarantee cover for collateral free credit facilities extended to micro and small enterprises (MSEs) upto Rs. 1 Crore.
(ii) issued guidelines in mandatorily requiring banks to dispense with collateral requirement for loans upto Rs.10.00 lakh to MSEs.
(iii) set up a Micro Units Development & Refinance Agency (MUDRA) Ltd. which would be responsible for refinancing all Micro-finance Institutions (MFIs), which are in the business of lending to micro / small business entities engaged in manufacturing, trading and services activities upto Rs.10.00 lakh.
This information was given by the Union Minister for Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Rajya Sabha here today.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.