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Tuesday, January 18, 2022

Pune: MSMEs request Union Commerce Minister Piyush Goyal for loan waiver, ease of credit

🔴 The MSME association pointed out that due to the two months of complete lockdown in Maharashtra, the industry saw zero output but banks insisted on regular servicing of their loans.l

By: Express News Service | Pune |
Updated: December 16, 2021 7:27:07 am
Union Food Minister Piyush Goyal (File)

The Pimpri-Chinchwad Small and Medium Scale Industries Association has requested Union Minister of Commerce and Industries Piyush Goyal for a complete loan waiver for the two months of Covid-induced lockdown and a special scheme for credit disbursal for the sector. During their interaction with Goyal, the association has asked for extending the credit guarantee scheme of scheduled and cooperative banks, also to the sector.

Sandeep Belsare, president of the association, pointed out that due to the two months of complete lockdown in Maharashtra, the industry saw zero output but banks insisted on regular servicing of their loans.

The central government’s scheme, Belsare said, had only covered the nationalised banks and thus units that bank with other banks have not been able to benefit from them. Belsare also asked for a 1 per cent relief in interest rate for working capital the banks extend to them.

Most of the units, he said, find it difficult to raise working capital from banks although the sector comes under priority lending. In this context, Belsare asked for special guidelines which would make the availability of loans easier for the sector. The rate of interest in nationalised banks, he said, is lower than that in cooperative and private banks but the former is reluctant to lend to the sector.

MSMEs, perhaps, were the worst hit during the Covid-19 crisis as production had completely come to a standstill. Recovery has been slow for the micro and small units while the medium units have picked up the pace. Many of the smaller units are still struggling with high input costs adding to their burden.

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