Interest Equalisation Scheme for MSME exporters: Revision of Interest subsidy

Reserve Bank vide its circular no. RBI/2018-19/81/DBR.Dir.BC.No.09/04.02.001/2018-19 dated November 29, 2018 announced that with effect from November 02, 2018 Interest Equalisation rate from 3% to 5% in respect of exports by the Micro, Small & Medium Enterprises (MSME) sector manufacturers under the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit. According to…

How agriculture insurance helps farmers on crop losses?

The farmers in India have been inherently facing with on-farm risks like famine; flood, extreme weather etc. Though these types of natural risks cannot be totally avoided, there are many new on-field techniques developed in India to minimize the loss. However, the most important strategy to mitigate the risk is agriculture insurance. The insurance company…

Definitions of Micro, Small & Medium Enterprises (MSMEs)

The MSMED Act 2006 classifies Micro, Small & Medium Enterprises (MSMEs) in two categories viz. Manufacturing Enterprises and Service Enterprises. The manufacturing enterprises are those who are engaged in manufacture or production of goods pertaining to any industry listed in first schedule to the industries (Development and Regulation) Act 1951 or an enterprise employing plant…

Why Micro Small enterprises do not get adequate bank finance?

Although, the commercial banks and other financial institutions have been making steady strides to increase their share of credits to MSE sector, but they have certain difficulties in sanctioning limits to SME borrowers.  In an environment of NPA numbers in banking sector alarmingly swelling, banks themselves are under the stress and facing challenge to raise…