As per the MoU, the top public sector lender will provide working capital to entrepreneurs seeking to start new micro, small and medium enterprises (MSME) within a short time -frame after providing theoretical approval within 15 days of making an application, the government said in a release here.
The MoU was signed between principal secretary M K Das and SBI Ahmedabad circle general manager Ramesh Kumar Agarwal.
Within 15 days of making an application, the bank will provide theoretical approval to the project. Start-ups can submit an application on either the MSME portal or to the local nodal agencies, it said.
The SBI decided to help MSME entrepreneurs in Gujarat looking at their high recovery rate, said the release.
Chief Minister Vijay Rupani, also present at the MoU signing event, said the number of applications for MSME loans has increased this year compared to a year ago.
Even the experience of banks in terms of loan recovery has been very good, he said.
The state government had, in October last year, announced that MSME units will no longer be required to take various approvals to begin operations for the first three years.
The government said MSME units exempted from taking approvals for the first three years, can start operations after getting an acknowledgment certificate from the state nodal agency by submitting 'declaration of intent.'