MSME Ministry is trying to develop a system to ease the access to funds. Under the proposed system, MSMEs which apply for loan will have to fill up a one page questionnaire about their requirement and a two page description regarding what they want to do, said outgoing MSME Secretary Anup K Pujari to SMEpost.com.

This mechanism for easy access to funds. will be put in place in the next 6 months, he said.

“It will not be a detailed project report but the minimum requirement as to what a person would like to do, is there a market for their product, is there a possible cash flow situation and therefore the requirement for the funds for which he has X % from his own sources or from somebody else and (100 – X) coming from firm,” said Pujari.

This type of three page requirement may go a long way in bridging the trust deficit between the bankers and seekers of fund.

RBI and MSME Ministry are working together to consolidate and collate the type of requirement required by banks from MSMEs for taking the loan. The bankers will know the minimum basic requirement.

There is some amount of lack of trust and information. People think that bankers are not helpful, bankers think that proposers are not coming from the correct side so there is lot of role to be played by the state government to make sure that both of them meet, there is a demand side as well as supply side to close the gaps between the two, said Pujari.

 In this, the applicant will suggest two or three banks from where he wants to take the loan and then the Ministry will send him to the respective banks.

 The Ministry is also seeking for an exchange mechanism with banks by which information can be reached to them and can be monitored.