‘ MSME INITIATIVES START YIELDING RESULTS, CREDIT TO SECTOR UP 20%’

New Delhi, March 13: Finance ministry on Tuesday said the various initiatives taken by the government has started yielding results with loans to the sector witnessing a growth of 20 per cent. “MSME initiatives start yielding results! Credit to Micro sector up 20% YoY; MUDRA loans contribute to offtake; PSB share in first time borrowers 79%. Transformational shift underway!” financial services secretary Rajiv Kumar said in a tweet.

First time borrowers increased 4 lakh and the public sector bank contribution was 79 per cent, he said. Loans to small business in the sub- Rs 10 lakh category registered a growth of 32 per cent, he said. MSMEs with loan between ` 10 lakh to ` 5 crore have the lowest deliquency rate, he said, adding, these are relatively stable with limited downside. The government has taken a slew of measures, including tax concessions in the budget, for MSMEs with an annual turnover of up to ` 250 crore and lowering of the interest burden.