Page 33 - Banking Fiannce March 2018

ARTICLE

NEW WAYS

OF LENDING

TO INDIAN

MSMES

Background:- & Machinery or Equipment irrespective of the loan amount.
It can be for the sector of manufacturing / trading / services
As we know that MSMEs are the growth engine of Indian
/ Hospitals / Hotels, etc.
Economy since its inception. The Sector is the largest
employment generator after Agriculture. Large corporate
also depend a lot upon Micro, Small and Medium sector's
support at every level of business activities. With the fast
changing business scenario in the economy, the financial
needs of the MSMEs need to be addressed with the same
pace.

The sector consists of two types of basic activities. These
are, Manufacturing and Service activities. MSMED Act 2006
has bifurcated the same with the amount of investment.
MSMEs are categorized based on the investment in Plant

About the author

Ramkaran Singh
Chief Manager (Faculty )
Union Bank of India
Staff Training Centre, Ahmedabad

BANKING FINANCE | MARCH | 2018 | 33