Additionally, RBI has also removed loan limits of Rs5 crore and Rs10 crore per borrower to MSMEs in the services sector for classification under priority sector norms. This facility is available only to those firms whose aggregate loans are less than Rs25 crore. Additionally, RBI has also removed loan limits of Rs5 crore and Rs10 crore per borrower to MSMEs in the services sector for classification under priority sector norms. Latest RBI data showed that bank loans to micro and small enterprises (under priority sector) stood at Rs9.07 trillion as on 22 December 2017, registering year-on-year growth of 10.6%. In addition, Rs3,794 crore was allocated for credit support, capital and interest subsidy to MSME.

Source: Mint February 07, 2018 18:56 UTC