The government will create social microfinance institutions to provide loans to small businesses in the rural sector

The central government is working to bring social microfinance institutions in rural areas to help people open small shops and businesses.

This will facilitate the process of lending to small and medium traders or individuals in the rural sector.

According to some sources, these social microfinance institutions will offer quick and easy loans to people in need.

A “big and important” meeting will be held at NITI Aayog on August 13 on the matter, sources said.

In accordance with the plan, these microfinance institutions will provide a loan of up to Rs 10 Lakh. An applicant can get the loan within 3 days of submitting the application.

Since the government is proposing to set up such a financial institution targeting rural areas, soft loans will be provided to meet the needs of borrowers.

NITI CEO Aayog, MSME officials and IIT Delhi have been brought on board to move the plan forward.

People like rickshaw drivers, Kirana store owners, Mahila Bachat Sangathan can use the loan to start or run a business like papad making and other small businesses that can operate from home or a small unit .

Union Minister Nitin Gadkari also echoed the same when addressing a virtual MSME conclave hosted by the FICCI Karnataka State Council on Monday.

The government is working on the idea of ​​a land bank and a social microfinance institution to help people run small shops and businesses, Gadkari said.

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