4 out of 100 small units getting bank credit: NCEUS

New Delhi, November 06: The National Committee for Enterprises in the Unorganised Sector (NCEUS) on Tuesday said that lone four out of 100 non-farm units in the unorganised sector have depository financial institution credit. "The run batted in guidelines (on recognition little enterprises) are mostly flouted by banks," NCEUS President Arjun Sengupta said, adding that "only about 4% of the non-farm unorganized endeavors have got entree to institutional credit." The banking system is "insensitive to the demands of the unorganised sector" and entrepreneurs, both prospective and existing, are not able to entree finance in the first place, he said while releasing a study on 'Financing of Enterprises in the Unorganised Sector' here. The study was submitted to Prime Curate Manmohan Singh yesterday. Sengupta said it was indeed lurid that micro endeavors that lend up to one-third of the national gross domestic product have just 5% of the depository financial institution credit. He said the present flowing of recognition to little units of measurement is owed to government-sponsored programmes, otherwise the unorganised sector is by and big left to fend for itself. Sengupta said that despite run batted in guidelines to supply security free loans up to a bounds of Rs 5 lakh, "only 26% of the loans have got been advanced without collaterals." The last section of the unorganised sector, which include craftsmen and bungalow industries, received only 0.6% of gross depository financial institution recognition from the banks, he said. Whatever recognition that unorganised sector have received was entirely on business relationship of strategies like Prime Curate Rozgar Yojana, Rural Employment Guarantee Program etc, he pointed out. The committee have recommended that the authorities should do it compulsory for Banks to impart 5% of their nett depository financial institution recognition to micro endeavors having an investing of less than Rs 5 lakh. Agency Report