New Delhi/Lucknow: The government is considering a proposal to make banks answerable for denying loans to eligible MSME players, according to a Union Minister.
The MSME Ministry is in discussion with the Finance Ministry over the issue of loans to small and medium enterprises and in future, the lenders may be made answerable for refusing loans to eligible candidates, junior MSME minister Pratap Chandra Sarangi said.
The minister was of the view that the development of the MSME sector is often hampered due to non-cooperation of banks.
The MSME sector is one of the major job creators at the local level and with the lowest capital.
The lending risk for banks is low due to low investment nature, the minister explained.
“The Centre, in collaboration with the finance ministry, is now finding a solution to this issue. In future, banks might be made answerable if they refuse loans to eligible candidates,” the Union minister said during a function in Lucknow on Thursday.