Lok Sabha Question No. 1266 (UNSTARRED), answered on 2019-11-25
Subject: Quick MSME Loans
Ministry: FINANCE
Asked by: Hemant Tukaram Godse

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UN-STARRED QUESTION NO. 1266

TO BE ANSWERED ON 25 th November, 2019 / AGRAHAYANA 04, 1941 (SAKA)

## 'Quick MSME Loans'

1266 : SHRI HEMANT TUKARAM GODSE :

Will the Minister of FINANCE be pleased to state:

- (a) the number of applications received, accepted and loans given under the new 59minutes Micro, Small and Medium Enterprise (MSME) loan scheme across the country, bankwise;
- (b) whether any other initiatives have been taken to ensure effective credit to MSMEs; and
- (c) if so, the details thereof and the steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) : As on 31.10.2019, out of 2, 39,828 loan applications received, 1,90,543 applications have been accorded in-principle approval and 1,60,885 applications have been finally sanctioned using psbloansin59minutes portal. Bank-wise details are given in Annexure .
- (b) & (c) Apart from the psbloansin59minutes portal, a number of steps have been taken to enable effective credit to Micro Small and Medium Enterprises (MSMEs), which, inter-alia , include the following:
- (i) 2% interest subvention for MSMEs for loans up to Rs. 1 crore for the financial years 2018-19 (w.e.f. 02.11.2018) and 2019-20.
- (ii) Reserve Bank of India (RBI) has issued framework for Revival and Rehabilitation of MSMEs having loan limits up to Rs. 25 crore on 17.03.2016.
- (iii) RBI has permitted one-time restructuring of existing loans to stressed MSME units which are classified as ' standard' without a downgrade in asset classification vide circular dated 01.01.2019.
- (iv) Collateral free loans up to Rs 10 lakh for units in the Micro and Small Enterprise (MSE) Sector.
- (v) MSME loans, including service sector MSMEs, classified as Priority Sector Lending.
- (vi) Implementation of Trade Receivables Discounting System (TReDS) to resolve the problem of delayed payments to MSMEs and classification of factoring transactions as Priority Sector Lending.
- (vii) Target of 7.5 percent of Adjusted Net Bank Credit (ANBC), or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, fixed for Scheduled Commercial Banks (SCBs) for lending to Micro Enterprises.
- (viii) Calculation of working capital requirement up to Rs. 5 crore of MSEs simplified by defining it as 20% of projected annual turnover.
- (ix) Banks advised to mandatorily acknowledge MSME loan applications and put in place system for their on-line tracking.
- (x) RBI has advised banks to streamline flow of credit to MSEs for facilitating timely and adequate credit flow during their 'Life Cycle'.

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## Bank-wise details of application received, accepted and loans extended on psbloansin59minutes portal as on 31.10.2019

| S.No.   | Name of the Bank          |   No. of Application Received |   No. of Applications accorded in- principle approval |   No. of Applications sanctioned |
|---------|---------------------------|-------------------------------|-------------------------------------------------------|----------------------------------|
| 1       | Allahabad Bank            |                          5755 |                                                  5171 |                             4856 |
| 2       | Andhra Bank               |                          2678 |                                                  2080 |                             1467 |
| 3       | Bank of Maharashtra       |                          2704 |                                                  2210 |                             1109 |
| 4       | Bank of Baroda            |                         45291 |                                                 29062 |                            24395 |
| 5       | Bank of India             |                         20984 |                                                 17424 |                            14893 |
| 6       | Canara Bank               |                         13717 |                                                  9958 |                             8699 |
| 7       | Central Bank              |                         10116 |                                                  8371 |                             7551 |
| 8       | Corporation Bank          |                          8581 |                                                  8188 |                             7710 |
| 9       | IDBI                      |                          4583 |                                                  2875 |                             2440 |
| 10      | IDFC First Bank           |                           181 |                                                   160 |                                8 |
| 11      | Indian Bank               |                          4172 |                                                  3316 |                             2153 |
| 12      | Indian Overseas Bank      |                          3214 |                                                  2822 |                             1766 |
| 13      | Kotak Bank                |                           136 |                                                    38 |                                0 |
| 14      | Oriental Bank of Commerce |                         11233 |                                                 10280 |                             7977 |
| 15      | Punjab National Bank      |                         16464 |                                                 14195 |                            11080 |
| 16      | Punjab& Sind Bank         |                          3503 |                                                  3112 |                             2588 |
| 17      | Saraswat Bank             |                            82 |                                                    81 |                                6 |
| 18      | State Bank of India       |                         50571 |                                                 41085 |                            36767 |
| 19      | SIDBI                     |                          1166 |                                                   432 |                              161 |
| 20      | Syndicate Bank            |                          1908 |                                                  1547 |                             1026 |
| 21      | UCO Bank                  |                          3406 |                                                  3107 |                             2191 |
| 22      | Union Bank Of India       |                         24662 |                                                 20606 |                            17996 |
| 23      | United Bank of India      |                          3044 |                                                  2796 |                             2419 |
| 24      | Vijaya Bank               |                          1677 |                                                  1627 |                             1627 |
|         | Total                     |                        239828 |                                                190543 |                           160885 |

Source: Online PSB Loans Limited