NEW DELHI: The start-ups that have availed loan and are running successfully will be entitled for the second round of funding from the government (up to Rs 1 crore) to expand their business.
“The government has provided funds to many start-ups under MUDRA and we have many success stories. There are many entrepreneurs who are now successfully running their business and are looking for credit to expand their venture. So why not?,” Arun Kumar Panda, Secretary, Micro, Small and Medium Enterprises (MSME) told The New Indian Express.
“We will be soon announcing the scheme where these businesses will be getting second instalment of loans up Rs 1crore,” he added
The loans will be under the Prime Minister Employment Guarantee Yojna.“The proposal is already cleared by the cabinet and will be announced in next one or two months,” Panda said.The government is already working on the concerns of NPA among small businesses.
As per the Reserve Bank of India’s (RBI’s) NPA classification norms, banks have to make provision of 15 per cent against the defaulting account of MSME.Few days back Financial Services Secretary Rajiv Kumar said that the 180-day NPA norm for MSMEs would help reverse Rs 15,000 crore in the banking system as these had become standard asset. “MUDRA and initiatives in MSME space leads to rise in the new credit borrowers, giving wings to entrepreneurial ambitions,” Rajiv Kumar said.