CHENNAI:
The Micro, Small and Medium Enterprises has urged the Union Finance Minister Niramala Seetharaman to direct Reserve bank of India and the banks not to impose Non Performing Assets (NPA) norms for MSME units for a period of two years post-Covid-19 lockdown.
K V Kanakambaram, president of The Industrial Estate Manufacturers Association said that it will take more than six months to one year for MSME sector to be revived post lockdown as all are dependant on big companies for orders to survive.
"We feel that at this crucial time, the three months moratorium of interest and principal will not be sufficient for this sector as all the units will face severe liquidity crunch and majority of the units in the MSME sector will be forced to close down," Kanakambaram said.
He also urged the Finance Minister to instruct the RBI and all the banks to provide financial packages for MSME sectors with a long repayment period of 60 months with at attractive interest rate of 7 per cent for the MSME sector for all types of loans including working capital loans, terms loans, mortgage loans, term loans for machinery etc since all these loans have been given by taking sufficient collateral loans from the entrepreneurs.
MSME entrepreneurs during the times of crisis always will take it as a personal issue and settle the loans whenever the loans turn NPA by selling the house, land and jewels and again start and MSME unit, therefore the banks don’t have to fear about the loans not being recovered from our MSME community, he said in a letter to Union Finance Minister.
The Micro, Small and Medium Enterprises has urged the Union Finance Minister Niramala Seetharaman to direct Reserve bank of India and the banks not to impose Non Performing Assets (NPA) norms for MSME units for a period of two years post-Covid-19 lockdown.
K V Kanakambaram, president of The Industrial Estate Manufacturers Association said that it will take more than six months to one year for MSME sector to be revived post lockdown as all are dependant on big companies for orders to survive.
"We feel that at this crucial time, the three months moratorium of interest and principal will not be sufficient for this sector as all the units will face severe liquidity crunch and majority of the units in the MSME sector will be forced to close down," Kanakambaram said.
He also urged the Finance Minister to instruct the RBI and all the banks to provide financial packages for MSME sectors with a long repayment period of 60 months with at attractive interest rate of 7 per cent for the MSME sector for all types of loans including working capital loans, terms loans, mortgage loans, term loans for machinery etc since all these loans have been given by taking sufficient collateral loans from the entrepreneurs.
MSME entrepreneurs during the times of crisis always will take it as a personal issue and settle the loans whenever the loans turn NPA by selling the house, land and jewels and again start and MSME unit, therefore the banks don’t have to fear about the loans not being recovered from our MSME community, he said in a letter to Union Finance Minister.
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