Indian minister asks banks to ensure more, affordable credit to MSMEs

He said this at a meeting to discuss the issue of increasing the availability of export credit to MSME exporters.

At a recent meeting to discuss raising the availability of export credit to Indian micro, small and medium enterprise (MSME) exporters, commerce and industry minister Piyush Goyal asked domestic banks to ensure enhanced and affordable credit to MSMEs.
In the next four months, all services of the Export Credit Guarantee Corporation Limited would be digitised.

The meeting, attended by the top officials of 21 banks, was convened by the department of commerce in coordination with Export Credit Guarantee Corporation Limited (ECGC) in New Delhi.

Goyal said that the ECGC can examine the extension of the scheme proposed for nine banks to all the banks so that export credit offtake for MSME exporters can be raised, an official release said.

Bankers suggested that ECGC should adopt claim processing method similar to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Goyal advised ECGC to follow a pattern on similar lines to compensate their loss.

The minister also advised ECGC to examine the 75 per cent claim payment to banks under the Export Credit Insurance for Banks (ECIB) scheme within 45 days of receiving the claim.

In the next four months, all ECGC services would be digitised, he added.

Fibre2Fashion News Desk (DS)