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Smart Banking For MSME

Bhubaneswar: Access to Smart Banking solutions to MSME segment through credit schemes has helped the entrepreneurs in a big way.

While Ministry of MSME (MoMSME) has taken steps to ensure accessibility and affordability of funds with MSMEs, various States including Odisha have been benefitted a lot.

In order to ensure accessibility and affordability of funds to MSMEs, MoMSME is implementing schemes such as credit guarantee scheme (CGS) for micro and small enterprises (SME)s and Prime Minister’s Employment Generation Program (PMEGP).

So far credit guarantee scheme for Micro and Small Enterprises (CGTMSE) is concerned, Odisha has received 28,311 guarantees during 2020-21 with an approved sum of Rs.1134.55 crore.

During 2020-21 a total number of 8,36,065 Guarantees were made available with an approved amount of Rs.36,954.72 crore in the country.

During 2018-19, Odisha received 19,266 Guarantees with an approved sum of Rs.1213.41 crore, while across the country at least 4,35,520 guarantees were made available with Rs.30,168.57 crore of approved amount.

During 2019-20 this went up to 26,167 guarantees with Rs.1347.05 crore in Odisha, while across the country 8,46,650 guarantees were issued with an approved amount of Rs.45,851.22 crore.

The CGS for SMEs is mandated to facilitate credit guarantee support for collateral free/ third party guarantee-free loans to SMEs, especially in the absence of collateral to both existing and new enterprises, while PMEGP is a credit-linked subsidy program aimed at generating self-employment opportunities through establishment of micro entrerpises in the non-farm sector.

During 2020-21, so far PMEGP is concerned Odisha has been able to generate over 25,000 employment opportunities, while Country as a whole has generated 5, 95,320 employment opportunities.

The margin money allocated in PMEGP in Odisha was Rs.7626.82 lakh while in the country it was Rs.2,28,949 lakh.

The margin money utilized in Odisha was Rs.8748.07 lakh, while in the country it was Rs.2,18,880.15 lakh.

During this period, Odisha has been able to set up 3171 SME units, while in the country 74,415 SME units were set up.

During 2019-20, Odisha had been able to set up 2718 SME Units with creation of 21,744 employment opportunities, while India has been able to generate 5,33,224 employment opportunities by setting up 66,653 SME units.

During 2018-19, Odisha set up 3070 Units with creation of 24,560 employment opportunities, while utilizing margin money subsidy worth Rs.7856.18 Lakh.

So far India is concerned 5,87,416 employment opportunities were created with setting up of 73,427 projects utilizing margin money subsidy worth Rs.2, 07,000.54 lakh.

The accounts created under credit schemes of MoMSME have the provision of access to smart banking facilities such as online banking and phone banking, which helped the entrepreneurs in a big way, officials say.