Loans to MSMEs will reduce risk

MYSORE:  H S Upendra Kamath, chairman and managing director of Vijaya Bank, said that banks will have no problem in providing collateral-free loans up to `1 crore each to Micro, Small and Medium Enterprises (MSMEs), if they come up with technically feasible proposals. He was speaking after inaugurating on the sidelines of a function here Tuesday.    Stating that the upper limit of collateral free loan has gone up from `25 lakh to `1 crore, he said that providing loans to MSMEs will help banks as the risk is reduced given the fact that MSMEs don’t require colossal amounts.He said that banks are mandated to ensure that MSME credit grows 20 per cent every year.