Chennai: All India Manufacturers Organisation, which had conducted a nation-wide survey along with 10 other trade bodies, has highlighted problems MSMEs are facing to avail of credit from banks under this scheme.
It said this scheme is applicable only for those who have currently availed loan facility with banks. It does not cover those who do not have loan facility prior to 29 February 2020 but needing now.
“Also it is applicable only for accounts which are Normal / SMA 0 / SMA 1 but the fact remains, those who need this support belong mostly to SMA 2 category,” AIMO said.
K E Raghunathan, former national president of All India Manufacturers Organisation, said, “those eligible for the loan and those who need such loans feel, why take additional loan to meet non-productive expenses and suffer from servicing of the loan later, as it is not used for the purpose of meeting expenses towards increasing profit such as, for execution of pending orders or for increasing the order booking or for investment on assets and machineries . There is a fear of uncertainty and insecurity that exists in the minds of an entrepreneur.”
According to AIMO, many industries requested for consideration of SMA 2 account holders for this loan eligibility, waiver from interest burdens for loans upto Rs.2 crore- which are largely under micro sector and can not afford to service but needing support right now, must be on ad-hoc basis released automatically, without any insistence of documentations or MOD on earlier offered security.