MSMEs may find it easier to raise funds

To ease up financing requirements for the micro small and medium enterprises (MSMEs), lenders are looking at a proposal to attach moveable properties such as existing inventories too as collateral. At present only immovable assets such as real estate are taken as guarantee. If a proposal is accepted, then it will give a larger start […]

To ease up financing requirements for the micro small and medium enterprises (MSMEs), lenders are looking at a proposal to attach moveable properties such as existing inventories too as collateral.

At present only immovable assets such as real estate are taken as guarantee. If a proposal is accepted, then it will give a larger start to the cash strapped SMEs to borrow from banks.

According to Anil Bhardwaj, Secretary General, Federation of Indian Micro and Small & Medium Enterprises (FISME)

“It is important to come out with new ways to ease financing in the sector…the proposal to attach movable properties as collaterals can help to a large extent

While all public sector banks are expected to allocate at least 55% of credit to MSMEs and register a 10% annual growth in the number of accounts, most banks have failed to achieve this target

Image Courtsey: FISME.org.in