Latest news with #RojgarYojana
Mint
3 days ago
- Business
- Mint
Bank loan sanctions to MSMEs for job creation down nearly a third in FY25
Bank loans sanctioned to India's micro, small, and medium enterprises (MSMEs) under the Prime Minister's Employment Generation Programme (PMEGP) dipped by nearly a third to ₹12,315 crore in FY25, from ₹17,759 crore in FY24. The development assumes significance since MSMEs contribute around 29% to India's GDP. This comes in the backdrop of the government reworking its revival framework for MSMEs to ensure continuity of bank credit during their stress period. Launched in 2008 by merging Prime Minister's Rojgar Yojana and Rural Employment Generation Programme, PMEGP is a flagship credit-linked subsidy scheme of the government. Entrepreneurial demand weakens Bank loans sanctioned to MSMEs increased in FY22 in the wake of the covid-19 pandemic, and continued to increase till FY24. From FY22 to FY24, the amount of bank loans sanctioned to MSMEs nearly doubled from a little over ₹9,000 crore to nearly ₹18,000 crore, before falling to FY25 levels of ₹12,315 crore, according to data provided by the MSME ministry. Also Read: Kanpur node is key in UP Defence Corridor for indigenous manufacturing: PM Modi The dip in sanctioned loans also reflected a reduction in the number of businesses seeking credit. The number of businesses which received bank loans under the scheme in FY25 is lower than that in FY22, according to MSME ministry data. In FY25, about 1,08,923 MSMEs received loans from banks under the PMEGP, less than FY22's 1,09,127, after peaking in FY24 with 1,65,725 businesses, the data showed. Global uncertainty is likely to have doused entrepreneurial sentiment for smaller businesses in FY25, banking experts said. MSME growth is driven by domestic and global macroeconomic environment, said Vivek Iyer, partner and financial services risk leader, Grant Thornton Bharat. "FY25 has been categorized with many uncertainties ranging from geopolitical stress points in west Asia, the Russia Ukraine conflict, Sino-American rivalry, the impending US election outcome and then the subsequent outcome of the US election. When sentiment is poor, demand to start ventures is poor and hence demand for credit is poor," he said. Also Read: India remains fastest-growing economy for fourth year straight: FM Sitharaman Iyer clarified that banks had not changed their assessment criteria for MSME loans, highlighting that the dip in sanctioned bank loans is a demand-side issue, and not a supply-side problem. Access to finance still a hurdle The key objective of the PMEGP was to aid micro enterprises of self-employment ventures to provide employment to artisans and youth in both rural and urban regions. The intention of the scheme was to curb the migration of youth from rural to urban regions, the MSME ministry annual report for FY25 said. Under the scheme, the central government provides a part of the capital required to start a venture. Nearly one million micro enterprises have been assisted since the inception of the scheme till December 2024 with aid of ₹26,124 crore, providing estimated employment opportunities to over 80 lakh people, the MSME ministry FY25 annual report said. Lack of access to capital has been a key hurdle in MSME growth in India. A study by Niti Aayog and the Institute for Competitiveness in May 2025 cited Reserve Bank of India (RBI) data to show that MSMEs continued to have a small share of the credit to businesses deployed by 41 scheduled banks from 2020 to 2024. Also Read: Govt relaxes rules to boost GST registration among small businesses In September 2020, 14% of all credit deployed by these banks went to micro and small enterprises, while 4% went to medium enterprises. The situation improved by September 2024, when 20% went to micro and small enterprises, and 9% went to medium enterprises. The share of credit deployed to large businesses, however, still remained 71% in 2024, according to the data. In a 2022 World Bank Enterprise Survey, over a fifth of Indian MSMEs said access to finance is their biggest obstacle.
Time of India
23-05-2025
- Business
- Time of India
EDC simplifies CMRY scheme, expands access
Panaji: In a major policy shift aimed at widening access and accelerating disbursement, the Economic Development Corporation (EDC) of Goa announced significant simplifications to the Chief Minister's Rojgar Yojana (CMRY). The move, announced on Friday by EDC managing director B S Pai Angle, aims to promote entrepreneurship among Goans. 'We have removed all the hurdles existing in the CMRY scheme. It has now been greatly simplified,' Angle said, adding that officers have been deployed to panchayats across Goa since April 15 to spread information about the reforms in the scheme. 'We've already covered 50% of the panchayats and expect to reach the remaining soon,' said Angle. Among the key reforms, the age limit for applicants was raised from 42 to 50 years, with the condition that the loan repayment period must be completed by the age of 60. The scheme also removed the earlier income ceiling of Rs 10 lakh for eligibility, making it accessible not just to first-time entrepreneurs but also to existing business owners. Also, applications will now be considered even if the applicant has an outstanding loan with another bank. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo Angle said the EDC streamlined the processing system to ensure that loan sanction and disbursement are completed within two to three weeks. EDC disbursed over Rs 300 crore to more than 8,000 beneficiaries under the scheme in recent years, with 200 to 250 new applicants receiving sanctions this year alone. Angle acknowledged that the COVID-19 pandemic led to a spike in business failures, resulting in a default rate of around 10%. To address this, EDC is now offering structured entrepreneurial training along with financial support. 'Finance and skilling alone aren't enough. Our youth also need support in areas like compliance, legal issues, and business management,' he said.
India Today
21-05-2025
- India Today
Man claims to be ex-MP's secretary, dupes job seekers in Andhra Pradesh, held
A man posing as the personal assistant to a former MP allegedly cheated several people in Andhra Pradesh's East Godavari district by promising government accused, Kommula Charan, claimed to be a former MP's secretary and, along with accomplices Kunche Srikanth and Maruboyna Rambabu, offered fake job placements in ONGC, healthcare, and other scam surfaced after victims approached police, leading to an FIR at Rajolu station in Konaseema. Charan is currently believed to be in In March this year, India Today unearthed an employment scheme offer run by scamsters. In the fraud, perpetrated under a non-existent 'Gramodyog Rojgar Yojana' (Rural Employment Scheme), fraudsters posed it as a government employment initiative, run by the Union Ministry of Labour and even created a website and to make it look more authentic, it had a 'Organisation Awards' section featured several images of people receiving awards at different ceremonies, which were lifted off the internet and were completely unrelated.A registration fee of Rs 1,705 was demanded via Google Forms. The India Today report warned people to not fall for these fake schemes and look for a domain address or the website URL to carry either or in November 2024, a fake website named 'Gramin Udyamita Vikash Nigam' duped job seekers by posing as a government-backed portal. It used official symbols like the national emblem and PM Modi's photo to appear legitimate and advertised fake jobs in West Bengal, Haryana and Assam. Applicants were asked to pay registration fees via QR codes. Authorities say it was part of a wider scam targeting the by Rahen Philip IN THIS STORY#Andhra Pradesh
