Micro, Small & Medium Enterprises (MSME) Sector Lending
The Reserve Bank of India (RBI) has issued a master circular outlining the guidelines for lending to the MSME sector.
Definition of MSMEs:
Enterprises are classified into micro, small, and medium based on their investment in plant and machinery or equipment.
Manufacturing/Production Enterprises:
- Micro: up to Rs. 25 lakh
- Small: above Rs. 25 lakh but up to Rs. 5 crore
- Medium: above Rs. 5 crore but up to Rs. 10 crore
Service Sector Enterprises:
- Micro: up to Rs. 10 lakh
- Small: above Rs. 10 lakh but up to Rs. 2 crore
- Medium: above Rs. 2 crore but up to Rs. 5 crore
Special Provisions:
The Khadi and Village Industries Sector (KVI) and indirect finance are also eligible for priority sector lending.
The circular aims to promote lending to the MSME sector, which is critical for the country’s economic growth and development.
Chat with the Master Circular:
Download: Master Circular – Lending to Micro, Small & Medium Enterprises (MSME) Sector