Exporters Says that the introduction of a new loan guarantee scheme incorporating loans up to Rs 100 crore for the MSME sector will help promote investment, manufacturing and exports. He said that lack of adequate funding for export MSMEs has been a challenge for a long time, limiting their ability to compete in global markets. The Finance Ministry said in a statement on Wednesday that the Mutual Credit Guarantee Scheme launched for Micro, Small and Medium Enterprises (MSME) aims For giving, ‘Member Borrowing Institutions’ (MLI) has to be given 60 percent guarantee coverage from National Credit Guarantee Trustee Company Limited (NCGTC).
Help will be given in funding
MSMEs have to fulfill certain conditions to avail this scheme. The borrower must be an MSME with a valid enterprise registration number. The guaranteed loan amount should not exceed Rs 100 crore and the minimum cost of equipment should be 75 percent of the project cost. Ajay Sahai, Director General of Federation (Fio) of Indian export organizations, said, “The scheme will significantly increase the financial access of enterprises involved in our micro, small and medium enterprises, especially manufacturing and exports.”
This will benefit
He said that this scheme will now give MSME very important support to invest in modern machinery and equipment. International business expert and high-tech gears chairman Deep Kapooria said that the scheme is a timely policy announcement by the government. He said, “In view of India’s focus on promoting manufacturing and India’s focus on the current restructuring of the global supply chain, this policy of lending to MSME will increase their integration in global value chains.” Kapooria said that it said that this makes the electronics sector the sector sector Especially will help, where India is trying to promote its component manufacturing ecosystem. Mithileshwar Thakur, general secretary of the Apparel Export Promotion Council (AEPC), said that this would help to increase the manufacturing capacity of MSME and increase the share of manufacturing in India’s GDP.
(With PTI/language input)
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