Banks lend loans to Micro, Small and Medium Enterprises (MSMEs) across the country. As reported by Reserve Bank of India (RBI), the credit outstanding to MSME sector by Scheduled Commercial Banks across the country at the end of March 2023 is 22.60 lakh crore.
Further, as informed by RBI, banks are mandated not to accept collateral security in case of loans upto Rs. 10 lakh, extended to units in the MSE sector in the country, including the State of Maharashtra. Banks are also advised to strongly encourage their branch level functionaries to avail the Credit Guarantee Scheme cover. The Government has taken various measures including ongoing schemes to provide easy credit facilities to MSMEs.
