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Resource centre on India's rural distress
 
 

High rates, low demand: Stressed MSMEs can’t tap into Govt relief -Sunny Verma

-The Indian Express

Viable companies, with good credit history, are able to raise funds, but the most needy among the MSMEs are facing a double whammy: slump in demand and lack of finance.

Banks have started disbursing funds to Micro, Small and Medium Enterprises under the 100% Emergency Credit Line Guarantee Scheme announced by Finance Minister Nirmala Sitharaman last month but for many firms, hit hard by the pandemic lockdown, credit is still a huge challenge.

Viable companies, with good credit history, are able to raise funds, but the most needy among the MSMEs are facing a double whammy: slump in demand and lack of finance.

Official data shows that as of June 18, state-owned banks sanctioned loans worth Rs 40,416 crore under the scheme of which Rs 21,028.55 crore has been disbursed.

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