Visakhapatnam, Jan 19 (KNN) The small scale industries in Vizag have urged the RBI officials to increase the bank loan repayment default period from three months to six months and also reduce the interest rate of loans under the MUDRA scheme from 12 per cent to 6 percent.

The Reserve Bank had organized a town hall meeting in the city with the representatives of the small scale industries.
 
The District Industries Centre of Visakhapatnam and the Visakha Autonagar Small Scale Industrialists’ Welfare Association (VASSIWA) appealed the RBI officials to increase the loan repayment default period to 6 months from the existing 3 months. The loan repayment default period is the period after which the loan becomes a Non-Performing Asset (NPA).

Stating various factors for delay in repayment, General Manager of DIC, Vizag, B Gopalakrishnan said that the small scale industries find it difficult to comply with the norms. He said there are delays in payments from the Government, PSUs and other big companies. He sought for a specialized MSME branch in the commercial banks.

VASSIWA President A K Balaji said that the interest rate for MSMEs should not be in double digit.
 
Some of the MSMEs said that under the MUDRA scheme, the loans should be given at the interest rate of 6 per cent and not 12 per cent. (KNN Bureau)