Bangalore, Jun 5 (KNN) Micro, Small and Medium Enterprises (MSMEs) in Karnataka have alleged banks of framing their own guidelines while disbursing the loans under Emergency Credit Link Guarantee Scheme (ECLGS).

The Karnataka Small Scale Industries Association (KASSIA), on Friday, said it has received a number of complaints and representations from their members about the difficulties in accessing the schemes.

''MSMEs are seriously concerned about the implementation of the emergency COVID related packages meant as relief for industry as they face innumerable difficulties in accessing benefits of the level at the banks,'' said KASSIA.

''For one, guidelines issued under the Emergency Credit Link Guarantee Scheme (ECLGS) are not uniform and different banks have framed their own guidelines leading to confusion and hardship in making use of the schemes at a time when industries are in dire straits,'' it added.

The Karnataka's industry body further said that the same confusion exists with regard to moratorium on the repayment of instalments and interest as well as other compliances. 

''While some banks may be transparent and forthcoming, a number of others are unsure and place hurdles in the way of the MSME customers in accessing these benefits,'' KASSIA avowed.

There are also problems with fixed electricity charges waiver by the State Government and the 2 mmd with the BESCOM insisting on multiple documents from MSMEs to get these exemptions.

KASSIA requested the government to immediately ensure that uniform guidelines are issued and followed by all the Banks and other institutions as otherwise a large number of MSMEs, accounting for approximately 30-35% of the units, may have no option but to shut down for want of succour.

''This will be unfortunate as the government has announced these benefits on the revival of MSMEs and sadly accessing them has become extremely difficult at the ground level,'' KASSIA asserted.