Banks keep asking for the security documents for passing small loans too to the MSMEs: COTMA
Updated: Jan 09, 2016 02:54:04pm
Coimbatore, Jan 9 (KNN) The Micro, Small and Medium Enterprises (MSMEs), for whom credit has always been the reason for concern, struggle with the banks to get their loans passed, be it small or big amount.
KNN talked to S. Ravi kumar, President, Coimbatore Tirupur District Tiny and Micro Enterprises Association (COTMA), who pointed that the Branch managers of banks do not pass the loans below Rs. 10 Lakh and keep asking to produce the land and building documents, which are not required for such amount as per the Guidelines of Reserve Bank of India (RBI)
They ask for security doucments, like Land agreement, Registration Certificate, purchase orders etc., which are not required to pass the loans to MSMEs as per the guidelines of RBI, he said.
MUDRA bank has already been announced by the Government of India but they are still to start their work, he added.
Meanwhile, on the issue of delayed payments from the Public Sector Units (PSUs), the entrepreneur was quite satisfied.
He said now the responses from PSUs is very nice; they pay as per the schedule.
PSUs are handling payments very nicely and everything is going peacefully, he added.
He said that the PSUs are not compromising with the quality, they need quality products now so the MSMEs are working hard to upgrade the product quality.
According to S. Ravikumar, the association had organised a similar event of Vendor Development programme in 2013 and 23 MSMEs had become vendors to PSUs after that. Now, with the Union Government making the public procurement policy mandatory, there are opportunities for more number of units.
There are PSUs that purchase components from other countries or the northern States. They are looking for local suppliers to bring down the cost and delivery schedule.
KNN talked to S. Ravi kumar, President, Coimbatore Tirupur District Tiny and Micro Enterprises Association (COTMA), who pointed that the Branch managers of banks do not pass the loans below Rs. 10 Lakh and keep asking to produce the land and building documents, which are not required for such amount as per the Guidelines of Reserve Bank of India (RBI)
They ask for security doucments, like Land agreement, Registration Certificate, purchase orders etc., which are not required to pass the loans to MSMEs as per the guidelines of RBI, he said.
MUDRA bank has already been announced by the Government of India but they are still to start their work, he added.
Meanwhile, on the issue of delayed payments from the Public Sector Units (PSUs), the entrepreneur was quite satisfied.
He said now the responses from PSUs is very nice; they pay as per the schedule.
PSUs are handling payments very nicely and everything is going peacefully, he added.
He said that the PSUs are not compromising with the quality, they need quality products now so the MSMEs are working hard to upgrade the product quality.
According to S. Ravikumar, the association had organised a similar event of Vendor Development programme in 2013 and 23 MSMEs had become vendors to PSUs after that. Now, with the Union Government making the public procurement policy mandatory, there are opportunities for more number of units.
There are PSUs that purchase components from other countries or the northern States. They are looking for local suppliers to bring down the cost and delivery schedule.
Loading...
