press trust of india
NEW DELHI, 18 JUNE: The Micro, Small and Medium Enterprises (MSME) Ministry will hold consultations with banks to persuade them for improving flow of credit to small sector.
“We are in the process of holding consultations with various banks, both in private and public sectors , as easier access to credit is paramount to the growth of any small business,” minister of state (Independent Charge) for MSME, Mr K H Muniyappa.
To start with, the Ministry will meet Karanataka-based banks this week.
“On 21 June, we will hold consultations with various banks including Canara Bank and United Bank, in Bengaluru,” Mr Muniyappa said.
The Ministry will hold such discussions in other states as well, he added.
The Prime Minister’s Task Force on MSMEs had recommended 20 per cent year-on-year growth in credit to micro and small enterprises to ensure enhanced credit flow. However, most of these units still face problems in getting easy access to finance.
Mr Muniyappa said the major factors affecting growth of the sector include shortage of working capital, lack of demand, marketing problems, shortage of raw material, power crunch and labour issues.