The guarantee premium has been reduced and coverage increased for smaller loans and backward areas. Credit rating by SIDBI at concessional rates and the putting in place of a comprehensive credit information system for this sector will go a long way in better credit allocation and pricing. Reserve Bank has issued detailed guidelines for debt restructuring for this sector.
In view of the importance of creation of employment opportunities in rural areas, especially with a focus on women and weaker sections of the society, Reserve Bank’s guidelines stipulate that 60 per cent of total advances to the small enterprises sector should go to micro enterprises.