RBI Hikes Cap on MSME Credit, Widens Scope for PSL
Hotline: 1800 102 2007
X
Search Business Opportunities
2013-05-03

RBI Hikes Cap on MSME Credit, Widens Scope for PSL

The Reserve Bank of India has more than doubled the limit for the Micro Small and Medium Enterprises (MSME) advances to the services sector to Rs 5 crore and announced three changes to the Priority Sector Lending (PSL) norms.

The Reserve Bank of India has more than doubled the limit for the Micro Small and Medium Enterprises (MSME) advances to the services sector to Rs 5 crore and announced three changes to the Priority Sector Lending (PSL) norms.

The RBI proposed an increase in the loan limit for MSMEs in the services sector to Rs 5 crore per borrower from Rs 2 crore earlier, says its annual policy statement.

Similarly, the regulator also suggested an increase in loan limit to Rs 5 crore from the earlier Rs 1 crore in case of lending to dealers/sellers of fertilisers, pesticides, seeds, cattle and poultry feeds, agricultural implements and other inputs, which are classified as indirect finance to the agriculture sector.

It has also been proposed by the policy statement that the limit on pledged loans should be raised from the current Rs 25 lakh to Rs 50 lakh as direct agricultural lending in the case of individual farmers and as indirect agriculture loans in the case of corporates, partnership firms and institutions engaged in agriculture and allied activities.

The reclassifications of the PSL regime have been done according to the feedback by stakeholders regarding the enhancement in certain loan limits to be classified as PSL advances “within the broad contours of the priority sector architecture,” the apex bank said.

According to Governor D Subbarao, detailed guidelines for the same will be issued shortly.

Related opportunities
  • Quick Service Restaurants
    About:Started by Vishal Gupta and Hardik Khandwala in Mumbai, WTC..
    Locations looking for expansion Maharashtra
    Establishment year 2016
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • About Us GingerBread House IND is efficiently managed & headed by..
    Locations looking for expansion West Bengal
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 1300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Kolkata West Bengal
  • Quick Service Restaurants
    To own a business in food & beverages industry, Chick..
    Locations looking for expansion Tamil Nadu
    Establishment year 2009
    Franchising Launch Date 2013
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Salem Tamil Nadu
  • About Us: CRYSTAL LUXURY has the exclusive mandate with CUBO DESIGN,..
    Locations looking for expansion Telangana
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 30lac - 50lac
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Hyderabad Telangana
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts