In a major boost for micro, small and medium enterprises (MSME), Narendra Modi on Friday announced measures for easier access to credit and at cheaper rates for the sector.

Launching the MSME Support and Outreach Programme here, Prime Minister Narendra Modi said that working in a cohesive manner through various ministries, the government had taken 12 decisions to support the MSMEs, including women entrepreneurs.

"To ease access to credit for the MSME sector, it has been decided to launch a portal that will permit completing formalities for grant of loan of up to Rs 1 crore in 59 minutes," Narendra Modi said.

The Prime Minister said that such a loan facility is also being launched for MSMEs registered under the Goods and Services Tax (GST).

"A loan option has been launched for GST registered MSMEs through the GST portal, where MSMEs can apply for loan," he said.

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For making available cheaper credit, Modi announced a 2 per cent cut in interest rates for loans of up to Rs 1 crore for GST-registered MSMEs. The reduction would also apply to "incremental loans" taken by such MSMEs.

Describing the decisions as a Diwali gift, Modi also announced a Rs 6,000 crore package for setting up MSME hubs. (IANS)