Nabard study reveals MSME sector growing with rise in loan demand 

Source: The Hitavada      Date: 05 Jan 2019 13:19:13


 

By Piyush Shrivastava,

MICRO, Small and Medium Enterprises (MSME) sector in the region is growing as demand for financial assistance is growing. Entrepreneurship development schemes initiated by the Union Government specially targeting rural market has started showing some results. The growth reflects in the demand witness in the coming year.

According to potential bank loan and credit projection in the study conducted by National Bank of Agriculture and Rural Development (NABARD) with above 20 per cent growth in demand to previous years the new demand is crossing figure of Rs 1300 crore.

Overall with different factors of loan demand in rural areas the demand is approximately 18.5 per cent higher than previous year. Rise in demand also reflects initiatives taken to boost rural economy by the Union Government as per wish of Prime Minister Narendra Modi to double farmers’ income. Potential loan demand in different heads includes crop loan of Rs 1587.16 crore, investment credit for agriculture at Rs 522.11 crore, Agriculture Infrastructure and Ancillary Activities Rs 360.10 crore, Rural or agro based MSME projection of demand is Rs 1382.88 crore and other priority sectors Rs 855.86 crore have been made. As per guideline issued by Reserve Bank of India and NABARD.

PCLP document is being prepared by NABARD since last four decades giving blue print and role of banking in rural development. MSME Sector being the priority programme of Government of India and various initiatives like linkages of Mandis with web based service, marketing tracking as well as agro-based enterprise development network is also being developed.

Bharat Krishak Samaj Divisional President K K Agrawal opined that the concept of taking post harvest works to secondary level and development of agro-based enterprise through involvement of farmers’ family members in processing while for this Government’s plans are available. But for farmers taking loan and making the enterprise successful involves lot of risk. Simultaneously, without education and training on skills required availability of funds will prove troublesome for farmers.

Commenting on the issue, Laghu Udyog Bharti, President, Rajneesh Singh said that loan for enterprise development mostly availed by progressive farmers. In this direction, Government has shaped a structure that helps farmers to learn about challenges and future prospects, market potential about selected entreprise and its demand and then after proper assessment banks are providing loan to farmers. The assessment potential credit loan document on MSME sector reflects growing awareness about entrepreneurship amongst rural masses especially amongst progressive farmers.