New Delhi: Commerce Minister Piyush Goyal has directed the Small Industries Development Bank of India and Credit Guarantee Funds Trust for Micro and Small Enterprises to set up a framework for faster loan processing for SME units.
The development comes after he met MSME associations from various industries to understand their issues and examine the steps to resolve them.
"The most important issues that were discussed in the meeting included the problem faced by SME units in accessing credit from banks, delay in payments from Public Sector Units and Government departments, the issue of GST refund, the dearth of skilled manpower in the SME sector and the issue of differing wages in States across the country," the ministry said in a statement.
"Commerce and Industry Minister directed Small Industries Development Bank of India (SIDBI) and the Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) to set up a framework that will enable them to process loans to SME units faster and also provide insurance cover to the SME exporters."
At present, the MSME sector employs over 100 million people and accounts for 45 per cent of manufacturing output and more than 40 per cent of the country's exports.