Credit score development to MSME sector agency in 2022-23

John Show
By -

 Credit score development

The government of our country has been working to uplift small and medium enterprises for a very long time now. They recognise that this sector contributes to 30% of the GDP of the country and plays an irreplaceable part in providing employment to the citizens of the country. The small enterprises of our country have been overlooked because of the lack of knowledge of their existence and informal nature. Most of the surveys that take place for this sector, end up overlooking these small enterprises. Here is a summary of how much these small businesses contribute


Employment generated

GDP contribution

Exports contribution


120 million




The MSMEs also have smaller units and enterprises which form a part. Most of these enterprises are informal and do not have a decided annual turnover. In fact, 99% of these enterprises are micro-enterprises. A survey done in 2015-16 stated that around 62 million enterprises are working with approximately 20 in number. Amongst them, the majority are one worker units. These enterprises earn an income which is just enough to survive the business market. This sector thus has a good revenue for the government.


What is an MSME loan?


MSME is known as micro, small and medium enterprise loan and can be availed by a business or an enterprise. This type of loan is generally used by businesses to borrow capital which can be utilized for buying new machinery, purchasing inventory etc. A lot of lenders are available to lend these loans.


Some common rates at which the loans are available are below:



Interest Rate

7.65% p.a. onwards

Loan Amount

Rs.50,000 onwards

Loan Tenure

Up to 15 years



What is the Credit Growth to MSME Sector?


According to a survey done by SBI, the credit growth to MSMEs has expanded by Rs. 52,800 crores. This is against the degrowth or the decrease that happened during the same time last year which was for Rs. 61,000 crores.


The overall growth seems to be up by a whopping 14% and this has been the highest in the last three years.


Retail loans have seen an increase of Rs. 1.34 lakh crores. This has also been a sharp rise as against the degrowth of the same for Rs. 26,500 crores last year.


The data if classified sector-wise has indicated that the growth has doubled in the last few years


In the financial year 2023 it is expected that the credit and the deposits both will grow in double digits.


A decline can be seen in the first quarter fortnight for the deposits and credit. This is assumed to be due to the salary withdrawals in the first month.


MSME Latest Loan Rates


The latest loan rates and banks providing loans to MSMEs are given below




Bank Name

Interest rate

Allahabad Bank

At the discretion of the bank

Oriental Bank of Commerce

10.70% p.a. onwards

Andhra Bank

At the discretion of the bank

Central Bank of India

11.25% p.a. onwards

Indian Bank

9.75% p.a. onwards

Punjab and Sind Bank

9.95% p.a. onwards

Punjab National Bank

At the discretion of the bank

State Bank of India

7.65% p.a. onwards

Syndicate Bank

At the discretion of the bank

UCO Bank

8.85% p.a. onwards

Union Bank of India

At the discretion of the bank

United Bank of India

10.25% - 16.25% p.a.




MSME Loan Schemes


The following loan schemes are available to MSMEs



Name of Scheme


1) MUDRA Loan

       Micro-Credit Scheme

       Credit for Micro Finance

       Refinance Scheme for Banks

       Mahila Uddyami Scheme

       MUDRA Card

       Equipment Finance Scheme

        Credit Guarantee Scheme

2) Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE)


3) Prime Minister’s Employment Generation Programme (PMEGP)



Eligibility for MSME Loan


The following are the criteria for getting a MSME loan for a business or an organization





Type of business

       Manufacturing Sector

        Service Sector

Manufacturing Sector

       Micro - < Rs.25 lakh

       Small - < Rs.5 crore

        Medium - < Rs.10 crore

Service Sector

       Micro - < Rs.10 lakh

       Small - < Rs.2 crore

        Medium - < Rs.5 crore



Documents Required for MSME Loan


The following documents may be required for availing the MSME loan



Document Required

Proof of Identity

PAN card, Aadhaar card, Voter’s ID, passport

Proof of Residence

Rental agreement, ration card, utility bills

Proof of Business Address

Rental agreement, lease agreement, utility bills

Proof of Income

P&L account and balance sheet of last 2 years

Tax documents

IT returns, sales tax return, PAN card

Proof of securities provided

Copies of title deeds/lease deeds offered as securities

Other documents

Projected balance sheet, project report, etc.


MSME Registration


       Click on the link

       If you have not registered before, click on ‘New Entrepreneurs or business with EMII

       You have to provide your name and Aadhaar details and click on ‘Validate and Generate OTP’. An OTP will be sent to your mobile number. Enter the OTP to authenticate. You will then have to provide the details of your PAN, and the organization you are a part of and validate it.

       Provide all your personal details and the details of the industry or plant

       After entering all the details on the site, click on ‘Submit and Get OTP’. An OTP will be sent. Enter the OTP after which you will receive a message for the successful registration.



We can conclude that Credit Score development in the MSME sector has seen a  good rise and is expected to maintain the same graph in the coming years.


Post a Comment


Post a Comment (0)

#buttons=(Ok, Go it!) #days=(20)

Our website uses cookies to enhance your experience. Learn more
Ok, Go it!