NSIC has been imparting skill training amongst aspiring entrepreneurs

National Small Industries Corporation’s CMD Subhransu Sekhar Acharya tells Outlook Business how the organisation is helping MSMEs grow. Edited excerpts:

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The Credit Guarantee Fund for MSMEs has been enhanced. How will NSIC collaborate with financial institutions to ensure MSMEs benefit from this increased credit availability?

The enhancement of guarantee cover from the present ₹5 crore to ₹10 crore is in sync with the enhancement of ceiling limits defining the MSME status of enterprises. While the threshold investment criteria have been doubled, the threshold turnover criteria have been enhanced by 2.5 times. These revisions are expected to bring in more economy of scale, contribute to National Manufacturing Mission and drive vertical growth within the MSME sector.

NSIC has been playing the role of a facilitator in establishing bank linkages for MSME units for a long time. It has formal MoUs with several banks for generating and forwarding credit-worthy proposals for sanction of credit facilities by these banks.

NSIC helps MSME units in the entire credit-application process including structuring of their loan application and advising effective management of finance.

Through these collaborative efforts, NSIC is helping to bridge the gap between financial institutions and MSMEs, making it easier for small enterprises to access the funds they need for growth and development.

A new scheme offers term loans up to ₹2 crore to 5 lakh first-time entrepreneurs from women, SCs and STs over the next five years. How will NSIC facilitate these entrepreneurs in establishing and scaling their businesses?