Section 10 of MSMED : Section 10: Credit Facilities

Explanation using Example

Example Application of Section 10:

Imagine a small startup, 'EcoCrafts', which produces eco-friendly stationery. The founders approach a bank for a loan to expand their business. Under Section 10 of The Micro, Small and Medium Enterprises Development Act, 2006, the bank's policies should be supportive and enable 'EcoCrafts' to access credit without undue difficulty. The Reserve Bank of India would have issued guidelines ensuring that 'EcoCrafts' does not face excessive red tape or delays in getting the loan, which helps them to grow their business and remain competitive in the market.