New Delhi, June 20 (KNN) As part of the RBI’s National Mission for Capacity Building of Bankers for financing MSME Sector (NAMCABS), FISME was invited to interact with the Bankers on the challenges MSMEs face in getting Bank loans.

Ashutosh Jatia, member, CEC, FISME had an hour long discussions with the Bankers at RBI Delhi,  on the different issues starting from collateral demanded by the banks to the redressal of NPAs.

Under NAMSCAB  periodic  workshop/ training  are being organized by RBI for capacity building of branch managers of Specialised MSME Branches.

The broad objectives of NAMCABS are to build skills for MSME lending and develop entrepreneurial sensitivity among the field level functionaries of specialized MSME branches of commercial banks. The mission is to train Branch Managers of specialised MSME branches of all banks, dealing directly with MSME lending.

Ashutosh Jatia, Executive Member of FISME and Shri R.P.Singh, Dy. Director, FISME interacted with the bankers related to problems being faced by MSEs in availing loan from banks.

Specifically, Jatia pointed out that the MSMEs are presently facing the problems of credit from the banks.

The banks are not providing the adequate amount of loan to the MSMEs, and the loan sanctioning process of the banks is very long and formalistic, conveyed Jatia.

The owners of the MSMEs have to produce different types of documents to prove their worthiness. In many cases, SMEs are not able to access loans from financial institutions because of the conditions attached to the loan,  particularly regarding collateral.

Jatia also requested banks to develop eco-friendly mechanism between MSEs and banks .

Bankers participating in the programme raised the issue of lack of trans transparency in MSMEs.

MSMEs do not open up their businesses to outsiders and they do not give the true information about their assets, liabilities, profits, tax collected etc. opined some of the Bankers.

Better transparency and dialogue between SMEs and financial institutions would surely help to solve some of the challenges SMEs face in accessing loans, was the unanimous opinion of the Bankers present. (KNN/ DB)