Union Cabinet Minister for micro, small and medium enterprises (MSMEs), Virbhadra Singh, said as per RBI data, loans outstanding against the MSME sector has gone up to Rs. 4,85,771 crore in March 2011 from Rs. 3,75,412 crore last year. Incidentally the RBI had advised banks in June 2010 to achieve a 20 per cent year-on-year growth in credit to micro and small enterprises (MSEs) and a 10 per cent annual growth in the number of micro enterprise accounts.
Further, banks have been advised to allocate 60 per cent of the MSE advances to the micro enterprises, to be achieved in stages namely 50 per cent in the year 2010-11, 55 per cent in the year 2011-12 and 60 per cent in the year 2012-13. The Government is implementing schemes like Credit Guarantee Scheme and Performance and Credit Rating Scheme to facilitate credit flow to the MSEs.
