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Banks play a key role in financing MSMEs

March 01, 2023

Banks play a key role in financing MSMEs
The MSME expo and the interaction of bankers at the buyer-seller meet have helped many MSMEs to get an insight into the options available to them to obtain financial assistance from banks. This could even help the small traders as the banks are willing to give loans without collateral guarantee, particularly for manufacturing units.

During their interaction with the entrepreneurs, the banker said they look at MSMEs as a growth engine for the country’s economy. This meet was organised by MSME Development & Facilitation Office of GOI, Visakhapatnam.

SBI, Canara bank and Bank of Baroda have opened their stalls at the event. AGM of SME wing in SBI, Tirupati, A Murali told Hans India that the banks have been processing the eligible applications quickly and providing loans. SBI has so far provided ₹17,856 crore to MSMEs in AP, while in the three districts – Tirupati, Chittoor and Nellore an amount of ₹2,042 crore have been financed.

To cater to the needs of MSMEs quickly, SBI is having six SME intensive branches in Tirupati region and the relationship managers deal with 30-40 MSME industries to facilitate their requirements. They have been extending financial assistance more to rice mills, shrimp processing units, granite units, fruit pulp factories, etc, in the three districts besides supporting various dealerships.

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