SIDBI's Loan Marketplace for MSMEs Udyami Mitra has approved 26 lakh loans

By: WE Staff | Thursday, 13 May 2021

The SIDBI’s platform, which was launched in 2016, also provides handholding assistance through a network of organisations that specialise in application filling, report preparation, financial training, skill creation, mentoring, entrepreneurship development programmes, subsidy schemes, and other services.

Udyami Mitra, a one-stop shop for MSMEs, has approved over 26.31 lakh loans so far, including loans under the Mudra scheme, the Standup India scheme for SC/ST, and women entrepreneurs, and PM SVANidhi. According to the platform's numbers, 411 lenders have signed up so far, including non-banking financial firms, small finance banks, and microfinance institutions.

The platform, which was launched in 2016, also provides handholding assistance through a network of organisations that specialise in application filling, report preparation, financial training, skill creation, mentoring, entrepreneurship development programmes, subsidy schemes, and other services.

To bring the number of loans approved through Udyami Mitra into perspective, the Emergency Credit Line Guarantee Scheme (ECLGS) launched last year sanctioned over 92.27 lakh loan accounts as of February 28, 2021.

According to data shared by Nitin Gadkari from NCGTC in a written reply to a separate query in the Rajya Sabha in March, the share of loans given to micro borrowers was highest at 80.44 lakh, followed by 4.26 lakh for small businesses and 2.93 lakh for medium businesses.

According to the Reserve Bank of India's April bulletin, gross bank credit deployment to micro and small enterprises (MSEs) in February 2021 was Rs 11.31 lakh crore, up 6.9% from Rs 10.58 lakh crore deployed in February 2020. MSMEs' share of total gross bank credit, on the other hand, had continued to fall.

MSEs kept 11.8 percent of the Rs 95.69 lakh crore gross bank credit outstanding as of February 26, 2020, down from 12.09 percent of the total Rs 94.97 lakh crore gross bank credit deployed in January 2021 and 12.11 percent in December 2020.

The Reserve Bank of India (RBI) declared earlier this month that scheduled commercial banks would no longer be able to subtract credit disbursed to new MSME borrowers from their net demand and time liabilities (NDTL) while calculating the cash reserve ratio (CRR). The relaxation was extended until December 31, 2021, for exposures up to Rs 25 lakh and credit disbursed up to the fortnight ending October 1, 2021, to help MSMEs get credit.