SIDBI’s loan marketplace for MSMEs Udyami Mitra enabled sanctioning of 26 lakh loans so far

SIDBI’s loan marketplace for MSMEs Udyami Mitra enabled sanctioning of 26 lakh loans so far

Over the years, the government has curated a number of schemes to aid citizens and promote societal development. From the MUDRA scheme to the PM SVANidhi mission, each of these initiatives aim to benefit beneficiaries in attaining convenient financing for different purposes. MSME or Micro Small and Medium Enterprises is another mission that allows eligible candidates to access business loans online. It renders business loans through a wider range of lending partners based on geographical locations. The MEME loan is a great opportunity to avail, especially if you have all documentation and information at your disposal. 

Udyamimitra and MSME

Udyamimitra is a credit delivery platform that enables you to access the different financial and non-financial services offered through MSME. Udyamimitra extends its functionality beyond just offering financial assistance. The portal was launched in the year 2016 and offers several different services. These include subsidy schemes, financial training, skill development, mentoring, and entrepreneurship development apart from many others.

Developments Made through Udyamimitra

Udyamamitra has effectively delivered a large number of loans to date. As per the official records available, the portal has sanctioned over 26.31 lakh loans so far. The data also draw light on the number of onboarded lenders who have disbursed the loans. 411 lenders have been part of the Udyamimitra mission. These lending partners include small finance banks, non-banking financial companies, microfinance companies and more.

As of 28 February 2021, 92.27 lakh loan accounts were sanctioned through the Udyami Mitra portal. These loans were granted under the Emergency Credit Line Guarantee Scheme (ECLGS) that was launched in the year 2020. As per the data released by Nitin Gadkari in a written statement in the Rajya Sabha, micro-business borrowers made for the highest number of borrowers with some 80.44 lakh applications. This was followed by small enterprises that included a total of 4.26 lakh disbursal. Medium businesses were made up of 2.93 lakh applicants.

The Gross Bank Credit

Meanwhile, the gross bank credit deployment to micro and small enterprises (MSEs) in February 2021 stood at Rs 11.31 lakh crore, up to 6.9 per cent from Rs 10.58 lakh crore were deployed in February 2020, according to the April bulletin by the Reserve Bank of India. However, the share of MSEs in the overall gross bank credit had continued to decline. Out of Rs 95.69 lakh crore gross bank credit outstanding as of February 26, 2020, MSEs’ share stood at 11.8 percent down from 12.09 per cent share in the overall Rs 94.97 lakh crore gross bank credit deployed in January 2021 and 12.11 per cent in December 2020.

The RBI had earlier this month announced the extension of exemption by scheduled commercial banks to deduct credit disbursed to new MSME borrowers from their net demand and time liabilities (NDTL) for calculation of the cash reserve ratio (CRR). Available for exposures up to Rs 25 lakh and for credit disbursed up to the fortnight ending October 1, 2021, the relaxation was extended till December 31, 2021, to ease credit flow to MSMEs.

To Conclude

The developments made by the government are extremely notable. The opportunity to get a business loan online ensures that every individual can access the loan without the hassle of going through the physical application process. However, it is important to pick a good business loan. A favourable business loan works extremely well in establishing your entrepreneurial endeavours. It helps you build a strong standing within the market and realise your dreams faster.

Evaluate your prospects of getting a business loan at Finserv MARKETS to view the best deals. The representatives will check your profile to offer you the most fitting business loan. You can also avail a detailed credit health report through our one one-stop-shop credit checker to effectively track your financial health and prepare a strong application.

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