Credit and finance for MSMEs: Principal financial institution for MSMEs in the country SIDBI and the government in December 2022 had announced Udyam registration to be mandatory for MSMEs seeking collateral-free loans under the Credit Guarantee fund Trust for Micro and Small Enterprises (CGTMSE). The move was aimed at boosting the MSME ministry’s ambition to bring more informal enterprises into the formal economic fold and enable them for benefits offered by the government to grow and scale.
Also read: SME Artha 2022: Why formalisation of MSMEs is needed on a war footing to solve credit, other challenges
“States must act proactively towards formalisation of MSMEs along with the need to make finance, technology, market and access for skilling available to MSMEs to become globally competitive,” Prime Minister Narendra Modi had said addressing the second national conference of state chief secretaries in New Delhi on January 6, 2022. To fulfil that ambition, ecosystem players such as SIDBI have also been enabling financial and digital interventions that will also help the government to further improve its existing scheme for small businesses, according to SIDBI’s Chief General Manager Subhransu Sekhar Acharya.
In an interaction with FE Aspire at the ScaleUp Summit last month, Acharya explained the government’s vision of formalisation of the MSME sector to bridge the credit gap, the latest benefits of the CGTMSE scheme and also improvement of MSME clusters.
