Priority sector lending target for micro enterprises Priority sector lending
Banks must put a fixed share of their lending into priority sectors, with 7.5% set aside for micro enterprises, so lending to micro and small units is something every bank is measured on.
Last updated on
- Status
- Open
- Run by
- Reserve Bank of India
What you get
- All bank loans to MSMEs count as priority sector lending
- Domestic commercial banks must lend 40% of their adjusted net bank credit, a measure of their total lending, to priority sectors
- Of that, 7.5% must go to micro enterprises. The same 7.5% micro target applies to regional rural banks, small finance banks and urban co-operative banks
- Khadi and village industry units are treated as micro enterprises
- Start-ups with loans up to ₹50 crore that meet the MSME definition also count
- Invoice finance for MSMEs through TReDS counts for commercial and small finance banks
Who can apply
- Micro, small and medium enterprises.
- This is a target for banks, not a right to any one loan
How to apply
- There is nothing to apply for. It helps to know that a loan to your micro unit helps a bank meet its target
In Kerala, every commercial bank, regional rural bank, small finance bank and urban co-operative bank in Kerala works to these targets.
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.