Giriraj Singh urges banks to offer collateral free loans to women

The Union Minister for Micro, Small & Medium Enterprises (MSME), Shri Giriraj Singh has said that women’s participation in entrepreneurship is a must for leading the nation forward.

He was addressing the inaugural session of the first-of-its-kind, day-long Conclave “EMPOWERING WOMEN ENTREPRENEURS 2019 – Financing & Enabling Women from Marginalised Sections”, organized by the National SC-ST Hub, Ministry of MSME, in Mumbai today. Bankers, investors and noted woman entrepreneurs were present on the occasion.

1.30 lakh bank branches have been asked to give loans, to one male belonging to Scheduled Castes / Scheduled Tribes and one female per month, so that they can set up their own business ventures.

The Minister made an appeal to banks to disburse loans on a need-based rather than on a “face-based” manner.  He informed that under the Credit  Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), the total limit for loan disbursal has been increased from 1 crore rupees to 2 crore rupees, that too without collateral. The corpus of the scheme has been raised from 2.5 lakh crore rupees to 7.5 lakh crore rupees; 18 lakh people could become entrepreneurs in the last four years, due to CGTMSE. Five crore people have been given loans under MUDRA. Many woman entrepreneurs are reaping the benefit of microfinance schemes as well, added the Minister.

The Minister said that Mahatma Gandhi had financially empowered women through the instrument of Charkha; no one can do financial management better than women, opined the Minister. Shri Singh said that he would provide solar Charkhas to five crore women; the MSME Ministry is developing technology which will reduce the wattage of the motor used to power the Charkha from 150 W to 30 W; further, the Charkha would be connected with a mobile app which would alert the user when the thread falls out of turn from the Charkha.

Shri Singh exhorted the women entrepreneurs present to come under the ambit of GST, which will facilitate them in securing loans.

The conclave endeavours to empower woman entrepreneurs from marginalized sections of the Indian society & enable their growth & success in business, by offering them substantial knowledge on various business opportunities and national best practices in doing business, access to financing, assessing risks and growth mantras.

This is expected to enable them to set up and run a sustainable business, creating a positive direct impact on the economy as well as the entrepreneurial ecosystem, for generations to come.

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