No orders, no raw materials, no labours but pressure to repay loans still there: MSMEs

New Delhi, Dec 5 (KNN) With the businesses being hit hard due to limited cash in hands, the micro, small and medium enterprises (MSMEs) are now struggling to repay their loans to the banks failing which they fear being categorized as NPAs.

Talking to KNN, IIA Amethi Chapter Chairman Shahnawaz Ahmad said, “The small industry is already hit hard due to currency ban. There are several problems such as labour payments, working capital loans, labour migration, logistic costs etc which the sector is facing but the pressure to repay the loans is still there.”

He said the industries are not getting any orders from their buyers, nor they are getting the raw material which has blocked their payments completely so in this situation the banks should not declare the loans as bad loans or NPAs.

In the current scenario, the MSMEs think, there should be some flexibility and their loan accounts should not be declared NPAs as of now keeping in view their past performance.

Meanwhile, Milind Kamble, President, Dalit Indian Chamber of Commerce & Industry (DICCI), told KNN that repaying loan, terming them NPAs on non-payment of instalments are routine banking procedures which should not be linked with demonetization.

Strongly backing that demonetizations ad difficulties in repaying loans are two separate issues, Kamble said, “If you get a loan and you fail to repay it then the loan account automatically is declared as NPA (Non-Performing Asset).”

He said, “It is a routine banking procedure. This thing has nothing to do with the demonetization.”

He also said that it is a next level economic reform and it will go a long way as it gives a good opportunity to the MSMEs to upgrade their businesses or to pitch in digital payment gateway. (KNN/ RS)