Is priority there any on providing credit to SSI ?
Credit to small scale sector has been covered under priority sector lending by banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the SSI. Specific schemes have been designed for implementation through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans upto Rs. 5 lakhs are made available by the banks without insisting on collaterals. Further Credit Guarantee Fund for small industries has been set up to provide guarantee for loans to SSI up to Rs. 25 lakhs extended by Commercial Banks and some Regional Rural Bank.
