Industry & Economy
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Andhra Pradesh
MSMEs seek reprieve on repayment of bank loans
Our Bureau
Hyderabad, Nov. 28 The Federation of Andhra Pradesh Industries (FAPI) has urged Prime Minister to direct the Reserve Bank of India to issue orders to banks to give one-year moratorium to the micro, small and medium enterprises (MSMEs) from repaying their loans.
Addressing a press conference here on Friday, Mr B.V. Rama Rao, President of the Federation of Andhra Pradesh Industries, said, “At a recent meeting of the Indian Banks Association held in Mumbai one of the points raised was the one-year moratorium for MSMEs and we have also written to the Prime Minister to direct the RBI to issue orders to all the nationalised banks on the same.”
Other demands
The Federation has also said that the earlier NPA (non-performing assets) norm of 180 days should be reintroduced instead of the current system of 90 days.
Mr Rao said that MSMEs were not getting adequate and timely financing from banks and the interest rate being charged was also very high at 16 per cent and this needs to be brought down for the survival of these units.
“The lending rates need to be reduced to four per cent for MSMEs. Otherwise they cannot be competitive in the global market,” he said.
FAPI in the memorandum has also stated that banks which used to charge quarterly interest earlier were now charging them on a monthly basis which is also causing heavy burden, especially due to the global economic slowdown.
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