To reach out and help Micro, Small and Medium Enterprise (MSME) sector to avail credit facilities, CII launched its ‘Online SME Finance Facilitation Centre’ in Chandigarh on Friday. The MSME sector constitutes the largest chunk of industrial units in the country and is thus crucial to revive growth of the economy. The sector that constitutes 70 percent of the total CII membership forms 90 percent of its members from Chandigarh.
The chief guest on the occasion, Regional Director, Reserve Bank of India, Nirmal Chand, launched the centre. Vijay Kumar, Director, MSME Development Institute, Ludhiana, Ministry of MSME, Government of India, was the guest of honour on the occasion.
CII has partnered with leading Banks & NBFCs to support MSME in availing of funds towards growing their businesses needs and expected to sign MOU with many more banks in the future. These banks include SIDBI, CRISIL, Indian Bank, Indian Overseas Bank, ICICI, DHFL, Muhtoot Fincorp, KNAB Finance, Religare Finvest, Synthesis, Electronica Finance Limited, HDFC Limited etc to facilitate SMEs on for their financial needs.
Nirmal Chand, Regional Director, RBI, highlighted that lending institutions must make an effort to understand why borrowing units fail. Addressing the reasons through facilitation centers can immensely improve productivity of SMEs. He appreciated the CII for launching the ‘Online SME Facilitation Centre’ in Chandigarh. “We must hold more such initiatives to promote such facilitation centers,” he said.
Nirmal Chand expressed concern that though the number of loan accounts has increased in Punjab and Haryana but the overall loan amount has decreased. In this context such initiatives by CII will help increase the quantum of loan amounts. He said the RBI will also invite CII in its empowering committee.
Dr Dinesh Dua, Chairman, CII Chandigarh Council said, “The online facilitation centre launched by CII will ensure that MSMEs are provided with credit at cost-effective rates, to meet their demand for working capital as well as for expansion and diversification.”
Capt Alok Sharma, Past Chairman, Regional Committee on MSMEs, CII NR and said, “In view of highly promising growth rate in the world over the next two decades, promoting MSMEs is crucial if India wants to be a part of this growth story. With this goal in mind, CII has launched the facilitation centre to provide advisory and credit facilitation support to SMEs. He also briefed about some of the initiatives taken by the Regional Committee on SMEs like Tax and regulatory Affairs Advisory Desk for SMEs and SMB projects.
Vijay Kumar, Director, MSME Development Institute, Ministry of MSME, Government of India, emphasised the need to have more and more facilitation centers. He said technological upgrade, new marketing strategies, are a must for MSME units to survive. The ministry is conducting outreach programs across the states to create awareness among SMEs about avenues to access finance. He appreciated CII for launching the Finance Facilitation Centre as it will bridge gap between Banks and SMEs.
Amit Tripathi, Deputy Director, CII, said, “The centre will operate as a one-stop-shop, aggregating financing options from multiple large financial institutions. It will match the SMEs financing demands with the banks and financial institutions, and also project large requirements for finance across financial institutions, provide facilitating role for SMEs to approach the process of accessing funds in a more professional manner. Finance Facilitation Centre will also work towards creating Financial Literacy amongst the SME members through Roadshows, Seminars Webinars and FFC Academy.