[India], Mar. 14 (ANI): Amid a slew of reforms taken for the empowerment of the Micro Small and Medium Enterprise (MSME) segment, the Centre revealed that loan disbursal to this segment witnessed a 20 percent growth year-on-year (YoY).
In a detailed infographic, Secretary of the Department of Financial Services (DFS) Rajeev Kumar noted that the MSME sector saw the fastest growth in terms of commercial credit, primarily due to a significant contribution from Micro Units Development and Refinance Agency or MUDRA loans, with 79 percent contribution from the public sector.
Furthermore, first-time borrowers increased by four lakhs, while loans to small businesses in the Rs. 10 lakh sub-section increased by 32 percent. Out of this, companies in the Rs.10-50 lakh segment saw 17.1 percent growth, while those in the Rs.50 lakh to Rs. 1 crore grew by 15.6 percent.
The data also revealed that MSMEs with a loan between Rs.10 lakh and Rs. 5 crores had the lowest crime rate, stable asset quality and limited downside.
MSME sector, in this year's Union Budget, was recognised as the engine of growth and employment.
Therefore, Union Finance Minister Arun Jaitley had announced Rs 3794 crore to MSMEs for credit support, innovation, and capital interest subsidy to ease cash flow challenges. (ANI)