Union Minister calls for outcome-oriented implementation of PMDDKY (See 'Corp Brief') Companies Act - Subsisting judgment of a Court is required to be complied with by concerned Ministry/authorities & intention to file review petition per se does not constitute grounds for withholding compliance with existing judgment: HC (See 'Legal Desk') BRICS Theatre Festival 2026 commences at National School of Drama (See 'Corp Brief') Reddy launches commercialisation catalogue of technologies (See 'Corp Brief') PMLA - Allegations of contravention of the UAPA, by itself, cannot justify indefinite pre-trial detention in separate PMLA proceedings carrying maximum sentence of seven years: HC (See 'Legal Desk') MeitY Pavilion showcases India's digital innovation at India Mobile Congress 2026 (See 'Corp Brief') DRI seizes around 5.8 kg foreign-origin gold worth Rs. 9 crores (See 'Corp Brief') Keylong to house ICMR's first dedicated centre for high-altitude medicine (See 'Corp Brief') SARFAESI - Demand notice issued under Rule 7(1) of IBC Rules, 2019 does not, per se, commence insolvency proceedings against personal guarantors or trigger interim moratorium per Section 96 of IBC 2016: HC (See 'Legal Desk') Digital Health Resources crucial to Building India's Research Mindset: Health Secy (See 'Corp Brief') 53 Tele-MANAS Cells operational across all 36 States (See 'Corp Brief') CSR is not merely a statutory obligation but as strategic instrument for India's growth: Former Cab Secry (See 'Corp Brief') FEMA - Intimation to Customs does not, by itself, constitute proof of import of software, particularly where the software was claimed to have been received through a data communication channel: Tribunal (See 'Legal Desk') India's maritime future will be written by young people: Sonowal (See 'Corp Brief') IPR - If defendant adopts mark that is minor phonetic and visual manipulation of well-known registered trademark, coupled with identical colour scheme, get-up, and trade dress, strong prima facie case of trademark & copyright infringement is made out: HC (See 'Legal Desk') ICAR-IIAB organises Pre-Rabi Kisan Goshti for 1,500 Farmers (See 'Corp Brief') IBC - Per Section 9 of IBC, where operational debt meets statutory threshold & no pre-existing dispute exists, then application for initiation of CIRP is maintainable: NCLT (See 'Legal Desk') India targets 10% of Global 6G Patents and Standards: MoS (See 'Corp Brief') SEBI - Allegation of violations of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations is serious & cannot be sustained on mere general allegations, individual perceptions, or violations of investment advisory regulations alone: SAT (See 'Legal Desk') India highlights Energy Security at 20th EAS Energy Ministers' Meeting (See 'Corp Brief') IPR - Visual deceptive similarity, phonetic identity, likelihood of public confusion, brand dilution, and misrepresentation of association are sufficient to justify interim injunctive relief: HC (See 'Legal Desk') Special Khadi and Village Industries Exhibition inaugurated at Delhi Haat (See 'Corp Brief') SARFAESI Act, 2002 - Writ remedy under Article 226 cannot be used to bypass or circumvent this designated statutory remedy & specialized forum, which is uniquely equipped to assess the intricacies of such proceedings: HC (See 'Legal Desk') An unsuccessful 'success fee' litigation (See CORP EINSICHT)

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Rs 25 Lakh loans, decision in 14 days - Govt moves to enhance credit access for MSMEs

Published: Mar 12, 2025

By TIOLCorplaws News Service

NEW DELHI, MAR 12, 2025: THE Reserve Bank of India (RBI), as a regulator, provides an enabling framework for Regulated Entities (REs) to cater to the financing needs of various sectors of the economy within the prudential boundaries. Further, credit related matters of REs are largely deregulated and the same are governed by the Board approved loan policies of the REs framed under the ambit of relevant regulatory and statutory requirements and terms and conditions of the loan agreement between the borrower and the RE. Banks have been advised to furnish the MSME borrowers with an indicative checklist of documents required for processing the loan application at the time of applying for the loan. For loans up to Rs.25 lakh to units in the Micro and Small Enterprises (MSE) borrowers, banks are advised that the timelines for credit decisions shall not be more than 14 working days. Various measures have been taken for increasing access to credit and finance for MSMEs.

These include:

- Specific targets for lending to MSME sector have been prescribed in Priority Sector guidelines dated 4.9.2020.

- SCBs have been mandated not to accept collateral security in the case of loans up to Rs.10 lakh extended to units in the MSE sector.

- Computation of working capital requirements of MSE units to be minimum 20% of the projected annual turnover for borrowal limits up to Rs.5 crore.

- Trade Receivables Discounting System (TReDS) has been operationalized to address the problem of delayed payments to MSMEs.

- Banks have been advised to link interest rates of loans extended to MSMEs to an external benchmark.

- RBI's Account Aggregator (AA) framework and proposed Third Cohort under Regulatory Sandbox (RS) for MSME Lending is expected to spur innovations that can fill the lending gap for MSMEs through the use of technology and data analytics.

- RBI's Unified Lending Interface (ULI) will make credit more accessible to underserved populations.

- GST Sahay App of SIDBI facilitates 'on tap' invoice-based (cash flow based) small value credit to micro enterprises as a paperless journey.

- Udyam Assist Platform (UAP) to register Informal Micro Enterprises (IMEs) i.e. micro enterprises not registered under the GST regime.

- Under Pradhan Mantri Mudra Yojna (PMMY), Government has taken various steps towards effective implementation of the Scheme. These include publicity campaigns, simplification of application form, Credit Guarantee Scheme, nomination of Mudra Nodal Officer, frequent reviews at various levels to monitor the achievement against allocated target, etc. Online platforms like Jansamarth portal provide a quick and efficient way to get loans for individuals and businesses, with approvals based on digital evaluation of the applicant's data.

- PSBLoansin59minutes enables MSMEs to obtain In-principle approval of loans from lenders onboarded on the platform.

- SAMADHAAN Portal launched for monitoring of outstanding dues to the MSEs from the buyers of goods and services xiii. The Government of India has launched various Credit Guarantee schemes for the benefit of MSMEs.

- New Credit Assessment Model based on the scoring of digital footprints of MSMEs developed by PSBs will leverage the digitally fetched and verifiable data available in the ecosystem and devise automated journeys for MSME Loan appraisal using objective decisioning for all loan applications and model-based limit assessment for MSME borrowers.

This information was given by Minister of State in the Ministry of Finance, Pankaj Chaudhary in a written reply to a question in Rajya Sabha yesterday.

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