The Central Government is working to bring social microfinance institutions in rural areas to help people open small shops and businesses.
This will ease the process of loans to medium and small traders or to individuals in the rural sector.
According to sources, these social microfinance institutions will provide easy and quick loans to people in need.
A "big and important" meeting will be held at NITI Aayog on August 13 regarding the same, sources said.
As per 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 proposes to set up such financial institution targeting the rural areas, soft loans will be provided to suit the needs of the borrowers.
NITI Aayog CEO, MSME officials, IIT Delhi have been taken on board to take the plan further.
People like auto-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 run from home or small unit.
Union Minister Nitin Gadkari also echoed the same while addressing a virtual MSME conclave organised by the FICCI Karnataka State Council on Momday.
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.
