New Delhi, Jan 19 (KNN) While the Micro, Small and Medium Enterprises (MSMEs) form an integral part of the economy, access to credit is a concern that continues to haunt the sector.

Talking to KNN, Jagat Jain an MSME Entrepreneur based in West Bengal informed that the lack of easy credit is becoming the new normal for the MSMEs.

Jain said that there have been a number of instance in which their unit could grab a tender from different national as well as international companies and organizations, but due to non-availability of funds, the unit remained hesitant and could not secure the orders.

Lamenting further he said that when the MSMEs approach bank for credit assistance, the banks as for a good sales record and the argument goes around as to what is to come first, egg or the chicken.

“The banks want good sales record, but with no funds in place, how do we secure orders and maintain sales”, he said.

With regard to the documentation Jain said that the unit has been able to put in all the necessary documentation required for claiming credit, yet the banks and not open to the MSMEs.

“We have had asked the banks to give us loan on the term that it gets approved only if we are able to fetch the tender, yet the response remained cold”.

The entrepreneurs have time and again approached different levels of the government including the state and centre government officials and have written to the former MSME Minister Kalraj Mishra as well, Jain informed.

While MSMEs are integral to the country’s economy, how is the unit to perform with no access to credit, Jain raised.

Earlier, Sunil Vaish, President of Indian Industries Association raised similar concerns of the sector.

Vaish said that the actual situation on ground is very different from what the government projects, especially when it comes to the MSME sector.

He further said that the flow of funds for the MSME sector still continues to be a big issue.

Explaining the concern further, Vaish said that the MSMEs are usually a one man show and it is not possible for the entrepreneur to have very bright balance sheets and trade ratio, as a result the banks don’t entertain the MSMEs. Whereas for a large enterprise, they have dedicated team in place to look after it

Commenting over the NPAs, Vaish said that the MSMEs share in the total NPAs is not much as compared to the large enterprises in terms of monetary value, yet the bank aren’t open for MSMEs. (KNN/ DA)