Efforts on to ensure easy loan for entrepreneurs: Kalraj Mishra

NEW DELHI: Keeping in mind the importance of MSME sector in generating employment and improving economy of the country, the government today said efforts are being made to ensure that budding entrepreneurs get hassle-free loans.

Intervening in issues raised by members in Rajya Sabha, Micro, Small and Medium Enterprises (MSME) Minister Kalraj Mishra dubbed the country's present unemployment problem as "horrendous", and said maximum job opportunity could be created through the sector, which is the "backbone" of the economy.

In reply to members' suggestion that granting of loans to entrepreneurs in MSME sector should be made hassle-free and simplified, he said, "We are putting our heads together to sort out the issue... We are trying to make it happen."

Admitting that entrepreneurs have to face a lot of trouble to get loans from banks, he said the government was trying to reduce the formalities also and ensure that entrepreneurs get timely loans.

Stating that the MSME sector has the potential to lift the country to the bracket of developed nations, he said the government was also trying to make things simpler for the MSME entrepreneurs. He said efforts are also being made to increase the fund flow to the sector.

"Through MSME, we can have a better strength of economy," he said, adding that the government would also strive to take the MSME sector in a big way to rural areas.

Earlier, moving a bill to amend the Micro, Small and Medium Enterprises Development Act, 2006, Vivek Gupta (TMC) said the definition of MSME should be redefined taking into account the rising inflation.

He also spoke on the need to support the MSME sector as it contributes nearly eight per cent of the country's GDP.