THE GOAN NETWORK
PANAJI
Rajya Sabha Member of Parliament Sadanand Shet Tanavade has called for urgent intervention to address banking challenges faced by Goa’s Small and Micro Enterprises (SMEs), which he described as the backbone of the State’s economy and a key driver of employment.
During the Zero Hour Mention on Wednesday, Tanavade stated that banks across Goa need to reassess their approach and improve their credit distribution policies, as this could create more opportunities for job creation and industrial expansion in Goa.
“Despite the substantial deposits held by banks in Goa, credit disbursement remains alarmingly low, with the credit-to-deposit ratio significantly below the national average. Nationalised banks in Goa are failing to meet lending targets under important government schemes, such as the Prime Minister’s Employment Generation Programme (PMEGP), etc.,” he said.
He further expressed apprehensions that aspiring entrepreneurs and youth face challenges such as excessive demands for collateral and guarantors, which limit their access to essential credit. “Moreover, educational loans are under-disbursed, leaving many students without crucial financial support. This cautious, risk-averse approach by banks is stifling Goa’s economic growth, limiting job creation, and hindering industrial development,” he stated.
“While Goa boasts a robust banking network, it remains inadequate in meeting the financial needs of priority sectors such as tourism, housing, education, and agriculture. Banks in Goa need to reassess their approach and improve their credit distribution policies, which could lead to more opportunities for job creation and industrial expansion in Goa.”
The MP, also the President of the BJP Goa Unit, reiterated the need for timely intervention to empower Goa’s small businesses to flourish, generate employment, and contribute significantly to both the state and the nation’s economy.
