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Budget 2019 expectations: SMEs demand digital platform for loan solutions from Modi, Jaitley

The industry experts have demanded from Prime Minister Narendra Modi and Fm Arun Jaitley an online platform in budget 2019 from where a loan seeker can go and file application for loan to his or her firm.

Budget 2019 expectations: SMEs demand digital platform for loan solutions from Modi, Jaitley
Over the years, MSMEs have been battling to get loans, given their inability to produce relevant assets as evidence. Photo source: Reuters
Written By: Asit Manohar
Updated: Wed, Jan 30, 2019
02:40 pm
New Delhi, ZeeBiz WebDesk
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In a bid to resolve smooth credit line flow to the small and medium enterprises (SMEs) and Micro, Small and Medium Entreprises (MSMEs), the industry experts have demanded an online platform from where a loan seeker can go and file application for loan to his or her firm. Experts say it would help entrepreneurs to save their time from moving around the lending institutions, which they can devote to their firm.

Commenting upon the matter Pankaj Verma, Head — SME Insurance at SBI General Insurance told Zee Business online, "SME and MSMEs need to move from pillar to post for approval of loans meant for their firms. This takes a lot of time from their part which hits their company as these companies are generally managed by the owner himself. So, if their would be a digital platform where an entrepreneur goes and fills his or her form for loan, it would be a great relief for the SMEs and MSMEs as the sved time would be devoted to the firm they are running." He said that the industry is buzz with this demand and expected that the Narendra Modi would include this long awaited wish of the sector into the budget 2019.

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Sampad Swain, Co-Founder & CEO, Instamojo told Zee Business online, “Over the years, MSMEs have been battling to get loans, given their inability to produce relevant assets as evidence. The current gap between the demand and credit supply within the Indian MSME sector is about $230 billion, says a study by World Bank. The much-awaited interim budget 2019 will determine the extent to which the Government will help this sector expand. The past four years have witnessed the implementation of several measures to uplift the MSME sector, especially given the rise in previous year’s budget to Rs 6,552.61 crore and other measures such as debt restructuring and the 59-minutes loan portal."