The target of bank loans to Micro, Small and Medium-scale Enterprises (MSMEs) in Coimbatore district for 2025-2026 is ₹39,774 crores, which is almost ₹7,284 crores more than last financial year.
Bank loans disbursed to MSMEs in the district in 2022-2023 were ₹22, 617.2 crores and it increased to ₹28,736.57 crores in 2023-2024. Last financial year the MSMEs received ₹32,489.94 crores as bank credit.
The demand for bank credit, especially for projects coming up under government schemes, is high in the district, said a bank official. There are several new projects that are submitted to banks in new verticals, including agro based industries, startups, etc. So, the target for this year is achievable, said the official.
Sources in the bank said with State gearing up for elections next year, there will be a huge push to support the MSMEs here through various schemes. Hence, the higher target for the banks.
Among the MSMEs, president of the Coimbatore Tiruppur District Micro and Cottage Enterprises’ Association president C. Sivakumar said most of the industrial verticals are not doing well and the first quarter was slow for the MSMEs. So the credit demand may not be much, he said.
However, C. Natarajan, president of the Coimbatore SIDCO Industrial Estate Manufacturers Welfare Association, said industries that are doing well are able to get more loans from banks and continue to perform well. When two or three major projects come up in the district, the capital investment is huge and the banks will be able to meet this demand.
Sources in the banks added that though the offtake in the first quarter of the current financial year was slow, it is expected to pick up in the coming months.
Published – June 28, 2025 08:49 pm IST
