New Delhi, Sept 27 (KNN)

MSME representing body, Association of Industries, Gangyal, Jammu raised serious concerns over the high interest charged by banks on loans. The association has asked for reduced interest rate and loans up to rupees 25 lakhs without mortgage due to competitive pressure on industry which is heavier in the market under GST regime

A threadbare discussion was held between Association of Industries and Jammu &Kashmir Bank President Arun Gandotra and Vice President, Anil Mehta.

At the meeting, Association pointed that high bank interest rate for the industrial sector strongly changes the whole market scenario and this mechanism adopted by the bank with high interest rates is crucial for the entrepreneurs when both the competition and production costs increase simultaneously.

It said that the Banks should provide upto rupees 25 lakhs to entrepreneur without the mortgage to run their industry hassle-free.

The Association further emphasized that with the recent incidents of rising of interest rate even on the accounts of excellent industry related customers, many entrepreneurs have begun to withdraw their accounts due to not giving the facility of good credit score to the entrepreneurs and high debt to income ratio.

 J&K Bank officials assured the office bearers of the association who attended the meeting to consider all these matters favourably.

Bansi Lal Gupta Acting President, Pardeep Vaid (General Secretary) and Sandeep Ohri (Secretary) of Association of Industries (Regd.), Gangyal were present during the meeting.