Why most businesses, startups trying to register as MSMEs may not get loans

Why most businesses, startups trying to register as MSMEs may not get loans

As small businesses and start-ups line up to register as micro, small and medi

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As small businesses and start-ups line up to register as micro, small and medium enterprises (MSMEs), most do not stand to benefit from the government’s relief package, say officials.


The government had last month announced worth Rs 3 trillion for an estimated 4.5 million that are facing a liquidity crunch since last year.



While the term — that are collateral-free and automatic — have been made available till October 31, only businesses that have outstanding of up to Rs 25 crore would be eligible.


This saw a surge in start-ups and small businesses across the country logging in to the MSME Ministry’s registration portal — Udyog Aadhaar — hoping to get a shot of liquidity through the loans, as well as other benefits.


Experts, however, say the loan scenario looks bleak.


ALSO READ: Centre warns banks on delays in disbursing Rs 3 trn loans to MSMEs


“These new loans are categorised as ‘additional working capital finance’ for firms which have already been…



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