ENA MSME 2019-07-22 12:01:41 <p><strong>New Delhi, July 22 (KNN)</strong> The State Bank of India has raised the penal interest from 2% to 5% in case of non-adherence to agreed terms &amp; conditions including delays and non-financial stipulations, according to sources.</p> <p>It means, if the installments are not received as per the repayment terms and any stipulations are not met, the bank will impose penalty interest of 5% which is too high and higher penalties often lead to corruption, affirmed by one of the entrepreneurs in the name of anonymity.</p> <p>The entrepreneur claims that bank officials are arm twisting in the name of penal provision.</p> <p>He said that the move would give big jolt to MSMEs because for any short term default they are forced to pay heavy amount.</p> <p>It is pertinent to mention that MSMEs have stressed cash flow because of delayed cash payment from large companies, he added.</p> <p>Other fallouts he mentioned that the customers are miffed by this unilateral / adhoc stipulations and competitive banks are using this as a tool to influence SBI customers.</p> <p><iframe frameborder="0" height="540" id="mgiframe" src="//mg.mgid.com/mghtml/framehtml/c/k/n/knnindia.co.in.338951.html" width="100%"></iframe></p> 23245 https://knnindia.co.in/news/newsdetails/msme/sbi-raises-penal-interest-from-2-to-5-a-big-jolt-for-msmes 2019-07-22 12:01:41 knnindia.co.in