MSME entrepreneurs give Budget thumbs up

VISAKHAPATNAM: Rural entrepreneurs from have appreciated the Union Budget as it has given a powerful thrust to increase employment and economic growth. A sum of Rs 3,794 crore has been provided for credit support, as well as capital and interest subsidy for Micro, Small and Medium scale Enterprises (MSMEs).

The Pradhan Mantri MUDRA Yojana (PMMY) has led to the sanction of Rs 4.6 lakh crore in credit from Rs 10.38 cr MUDRA loans. Almost 76 per cent loan accounts are of women with more than 50 per cent belonging to SCs, STs and OBCs.

The Budget has proposed to set a target of '3 lakh crore for lending under MUDRA during 2018-19 after having successfully exceeded the targets in all previous years.

“Several public sector banks hesitate to offer collateral-free credit facility. However, the banks may now come forward to give the loan without any security under the PMMY,” said K. Ratna Srinivas, an entrepreneur from Anakapalle mandal. “I had knocked on the doors of all nationalised banks for the past six months to set up a new venture at Mamidipalem village of Anakapalle. State Bank of India gave us a loan of Rs 76 lakh after we mortgaged our family property worth '1 crore as security to the bank,” she said.

Ms Ratna had established Sri lakshmi Ganapathi Industries at Bavuluvada village of Anakapalle with an individual investment of Rs 25 lakh plus the bank loan.
“With the decreased rate of interest from banks and investment support from the Government, the MSMEs are likely to benefit further in the coming years. Again, interest subsidy would give a huge relief to entrepreneurs who have secured a loan,” she added.

Union Finance Minister Mr Arun Jaitley has proposed a reduced rate of 25 percent to companies that have reported a turnover up to '250 cr in the financial year 2016-17.