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Banks should lend liberally, responsibly to support MSME growth: Commerce Minister
Dec-23-2025

Stressing the importance of the banking system in aiding micro, small and medium enterprises (MSMEs), Union Minister of Commerce and Industry Piyush Goyal has said that banks should lend liberally and responsibly to support MSME growth. He further said banks, now empowered and should continue to serve the nation with honesty and boldness. He encouraged speedy and transparent loan approvals and disbursements, adequate availability of capital for capex, opex and working capital, and proactive guidance to MSMEs to help them leverage government schemes and capital markets as they grow.

The Minister highlighted that access to timely and adequate credit has been central to the growth of small entrepreneurs. Besides, he underlined that banks have played a key role in extending institutional finance to MSMEs, including small borrowers who earlier depended on informal sources of credit, thereby enabling them to start businesses, expand operations and improve their livelihoods. Goyal expressed confidence that MSMEs, startups, incubators and young entrepreneurs would continue to receive strong support from the banking system, complemented by various government schemes.

Union Minister of Commerce and Industry also stated that many large corporates began their journey as MSMEs, adding that the strength of the MSME sector would ultimately determine India’s future growth. He urged banks to be active partners in this journey, describing MSMEs and banks as inseparable twins whose combined growth would power India towards Viksit Bharat 2047. He said that public sector banks have emerged as strong and competitive institutions, standing shoulder to shoulder with private and foreign banks in supporting India’s growth.

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