Gujarat govt partners with SBI to facilitate MSME loans

The Gujarat government on Tuesday signed an MoU with State Bank of India (SBI) to

facilitate approval of loans to entrepreneurs in the MSME sector with ease and within a short time-frame.

As per the MoU, the top public sector lender will provide working capital to entrepreneurs seeking to start new

micro, small and medium enterprises (MSME) within a short time -frame after providing theoretical approval within 15 days of

making an application, the government said in a release here. The MoU was signed between principal secretary M K Das

and SBI Ahmedabad circle general manager Ramesh Kumar Agarwal. Within 15 days of making an application, the bank will

provide theoretical approval to the project. Start-ups can submit an application on either the MSME portal or to the

local nodal agencies, it said. The SBI decided to help MSME entrepreneurs in Gujarat

looking at their high recovery rate, said the release. Chief Minister Vijay Rupani, also present at the MoU

signing event, said the number of applications for MSME loans has increased this year compared to a year ago.

Even the experience of banks in terms of loan recovery has been very good, he said.

The state government had, in October last year, announced that MSME units will no longer be required to take

various approvals to begin operations for the first three years.

The government said MSME units exempted from taking approvals for the first three years, can start operations

after getting an acknowledgment certificate from the state nodal agency by submitting 'declaration of intent.' PTI KA PD

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