The Ministry of Micro, Small & Medium Enterprises (MSME) on July 29, 2024, notified regarding the Steps Taken to Enhance and Simplify Credit Flow to MSMEs.
The following has been stated:
• In terms of Master Direction on ‘Priority Sector Lending (PSL) – Targets and Classification’ dated September 4, 2020, all bank loans to MSMEs conforming to the conditions prescribed therein qualify for classification under priority sector lending.
• The Schedule Commercial Banks (SCBs) have been mandated not to accept collateral security in the case of loans up to ₹10 lakh extended to units in MSE category.
• The Computation of working capital requirement of MSE units to be done by banks based on simplified method of minimum 20% of the projected annual turnover of the unit for borrowable limits up to ₹ 5 crore.
• Free registration of MSMEs through ''Udyam Registration Portal'' for Ease of Doing Business.
[Press Release ID: 2038542]
