Entrepreneurship Development and Communication Skills

7.2.4.Credit for Small Scale Sector

Recognising the role of credit for the small scale sector, a focused credit policy has been in place since the early days. Priority sector lending is its most important component. Under it, banks are compulsorily required to ensure that defined percentage of their overall lending is made to the priority sectors, which includes small industries. As a part of the in stitutional arrangement, Small Industries Development Bank of India (SIDBI) has been set up as the apex refinance bank. Term loans are provided by State Financial Corporations (SFCs) and Scheduled Banks.

Besides, several schemes and programmes have been undertaken by the Government with the aim of facilitating access to :- (i) adequate credit from financialin stitutions; (ii) funds for technology upgradation and modernisation; (iii) integrated infrastructural facilities; (iv) modern testing facilities and quality certification laboratories; (v) modern management practices, entrepreneurship development and skill upgradation through appropriate training facilities; etc .