Lack of timely access to credit at affordable interest cost is a major challenge faced by most micro, small and medium enterprises. Non availability of collateral-free credit is a major hurdle hindering their business growth. World Trade Center Mumbai organised an Open House meeting on MSME Finance to discuss the innovative schemes of banks and other financial institutions to promote debt and equity capital to MSMEs.

The event was addressed by Mr. Jay Kumar Gupta, Deputy General Manager, SIDBI, Mr. Ashwani Dhingra, Zonal Head, Central Bank of India, Ms. Sherine Mendez, General Manager (Priority Sector Group), IDBI Bank, Mr. Sunil Daga, President – Business Banking Assets, Kotak Mahindra Bank Limited and Mr. Gagandeep Singh, Senior Manager, Primary Market Relationship, National Stock Exchange of India Limited (NSE).

Mr. Gupta remarked, "Energy Efficiency and Cleaner Production are no more choices; they are the way forward for running a sustainable business. We invite MSMEs to avail of SIDBI’s financial schemes for installing solar energy and adopting energy efficient machineries and business processes. SIDBI extends loans upto 100% of the project cost at very competitive interest rates (as low as 7% depending on the rating) to MSMEs for installing rooftop and ground mounted solar rooftop power projects. SIDBI has also partnered with Tata Power to assist MSMEs in their energy transformation journey for adopting solar energy.”

Mr. Dhingra informed, “This year, we aim 61% growth in MSME credit at our Mumbai and Goa Zone from Rs. 6,577 crore as of March 2023 to Rs. 10,618 crore by March 2024.”Mr. Dhingra further informed that the bank does not insist on external credit rating for MSME loans upto Rs. 25 crore and entrepreneurs can avail upto 25% of their last financial year’s GST payment as loan under its CentGST scheme.

Ms. Sherine Mendez, General Manager (Priority Sector Group), IDBI Bankalso participated at the event and shared information about the various initiatives of the bank to promote priority sector lending and credit to women self-help groups.

Speaking on this occasion,Mr. Dagamentioned that private banks are ahead in MSME lending as they have 65% share in the outstanding MSME credit of the overall banking system. Kotak Mahindra Bank is committed to meet the credit needs of MSMEs as it has 6% market share in this segment.

In his remarks,Mr. Singh pointed out to the recent surge in the number of MSMEs raising equity capital from stock exchanges.

Earlier in his welcome remarks, Dr. Vijay Kalantri -Chairman, MVIRDC WTC Mumbai suggested banks to handhold and support the credit needs of MSMEs, especially at the time of business slowdown, as they are the most compliant borrowers compared to large industries.

WTC Mumbai will conduct such Open House sessions periodically and send the issues and suggestions of MSMEs to financial institutions, he added.

The session was moderated by Mr. Pankaj Chadha, Senior Partner, Jyoti Steel Industries and it was attended by members of trade & industry, startups and women entrepreneurs.