MSME Policy Circular 2024-25 Overview

<p>Asochak, Patna-800030 (C)</p> Signup and view all the answers

<p>01.08.2024 (D)</p> Signup and view all the answers

<p>Section 1 (B)</p> Signup and view all the answers

<p>To review and approve loan applications from MSE borrowers (B)</p> Signup and view all the answers

<p>Minimum interest rate (C)</p> Signup and view all the answers

<p>To create more jobs and stimulate economic growth. (C)</p> Signup and view all the answers

<p>They are major contributors to the Indian economy despite their small size. (A)</p> Signup and view all the answers

<p>They are the second largest employment generator in India. (A)</p> Signup and view all the answers

<p>Their agility and dynamism in adapting to competitive markets. (C)</p> Signup and view all the answers

<p>They create job opportunities and contribute to economic development. (B)</p> Signup and view all the answers

<p>They provide ancillary services to large industries and generate employment. (A)</p> Signup and view all the answers

<p>They offer opportunities for cross-selling banking products and services. (A)</p> Signup and view all the answers

<p>To empower MSME entrepreneurs and enable them to compete effectively and contribute to economic growth. (A)</p> Signup and view all the answers

<p>To promote and finance the MSME sector (A)</p> Signup and view all the answers

<p>Prime Minister's Employment Generation Programme (PMEGP) (B)</p> Signup and view all the answers

<p>Inclusion of the services sector in the definition of MSMEs (A)</p> Signup and view all the answers

<p>They are crucial for inclusive growth and holistic development. (A)</p> Signup and view all the answers

<p>2006 (A)</p> Signup and view all the answers

<p>To ensure the genuineness of the suppliers of machinery (D)</p> Signup and view all the answers

<p>Easier access to raw materials and subsidies (B)</p> Signup and view all the answers

<p>To offer credit facilities to eligible borrowers (A)</p> Signup and view all the answers

<p>Release funds immediately upon application (B)</p> Signup and view all the answers

<p>Each item in the report for full satisfaction (D)</p> Signup and view all the answers

<p>They leverage available resources to enhance capabilities. (D)</p> Signup and view all the answers

<p>Repayment modes and account maintenance (C)</p> Signup and view all the answers

<p>To verify the supplier's legitimacy before fund disbursement (B)</p> Signup and view all the answers

<p>Mode of repayment and account maintenance (C)</p> Signup and view all the answers

<p>Releases should be made to verified supplier accounts only (D)</p> Signup and view all the answers

<p>Compliance with banking practices (C)</p> Signup and view all the answers

<p>45% (B)</p> Signup and view all the answers

<p>111 million (C)</p> Signup and view all the answers

<p>Inadequate market linkages (A)</p> Signup and view all the answers

<p>28% (C)</p> Signup and view all the answers

<p>Agricultural (D)</p> Signup and view all the answers

<p>By facilitating industrialization (B)</p> Signup and view all the answers

<p>Ancillary units (D)</p> Signup and view all the answers

<p>Policies for micro, small, and medium enterprises (D)</p> Signup and view all the answers

<p>Information Technology (A), Cold Storage (B), Brick Field (C), Tea (D)</p> Signup and view all the answers

<p>Purchasing a new company car for the owner (A)</p> Signup and view all the answers

<p>10 years (B)</p> Signup and view all the answers

<p>6 to 12 months (D)</p> Signup and view all the answers

<p>If the project execution experiences delays (C)</p> Signup and view all the answers

<p>Directly to the supplier (A)</p> Signup and view all the answers

<p>Based on the unit's sustenance requirements and surplus generating capacity (D)</p> Signup and view all the answers

<p>ROCE (Return on Capital Employed) (A)</p> Signup and view all the answers

Micro, Small and Medium Enterprises, key economic sector in India.

Increase in the production of goods and services in a country.

Creation of new jobs and opportunities for workers.

Disparities in economic development across regions.

Legislation aimed at supporting MSMEs' growth and sustainability.

The amount of money required to start and maintain a business.

The progress and improvement of society's economic conditions.

The ability of MSMEs to adapt and create new ideas or products.

A framework for supporting Micro, Small, and Medium Enterprises.

An enterprise with investment below a specified limit in plant and machinery.

An enterprise with moderate investment in plant and machinery and turnover limits.

An enterprise with higher thresholds of investment and turnover than small enterprises.

Guidelines to categorize enterprises based on investment and turnover.

Assets pledged by borrowers to secure a loan.

A fee charged by lenders for processing a loan application.

Late payment of dues, impacting borrower and lender relations.

Micro, Small, and Medium Enterprises sector vital for India's economy.

MSMEs contribute 45% to manufacturing output and over 28% of GDP.

MSMEs support large industries by providing necessary services.

The MSME sector has opportunities for rapid expansion in India.

Government measures to support and promote MSMEs.

MSMEs encounter issues like credit flow and market linkages.

Small Industries Development Bank of India established in 1990 to finance MSMEs.

Credit Guarantee Fund Trust for Micro and Small Enterprises established in 2000 for credit facilities.

Prime Minister’s Employment Generation Programme launched in 2008 to create self-employment opportunities.

Industries that support larger operations and enhance industrial growth.

Economic growth that benefits a wide segment of the population, ensuring opportunities for all.

Development of MSME sector is key for holistic national development.

Borrowers must verify the legitimacy of their suppliers before requesting funding.

Branches must confirm the authenticity of invoices before processing disbursements.

Funds should ideally be disbursed directly into the supplier's bank account after verification.

At disbursement, borrowers should receive guidance on repayment and account management.

Adhering to all instructions during the credit delivery process, including pre-sanction inspections.

A loan for capital expenditures, fixed assets, or expansion with a maximum duration of 10 years.

Time frame before loan repayments start, typically 6 to 12 months, based on project needs.

The release of loan funds to the borrower, controlled via compliance checks and draw-down schedules.

Plan outlining when and how loan repayments will be made, considering the project's cash flow.

Evaluation of a project’s technical, economic, and financial feasibility before loan approval.

Quantitative measures like Debt Equity Ratio and Current Ratio, used to evaluate financial health.

The ability of a business to produce cash through its operations, critical for loan repayments.

Ensuring that disbursed funds are used as intended in the project.