The Marathwada Association of Small Scale Industries and Agriculture (MASSIA) has approached banks to consider a moratorium on repayment and debt restructuring, higher working capital limits, additional term loans and bills discounting or factoring.
The Association has engaged the government for assistance in reviewing non-performing MSMEs assets to overcome temporary lows and help keep the units alive.
HDFC Bank has decided to slash interest rates on personal and commercial loans up to 150 basis points, from Jan 19, 2009. In addition, the bank will also cut interest rates on corporate loans and wholesale credit, a positive step for small and medium businesses.
The move is a pre-emptive measure to cushion slackening auto, manufacturing and small business sales in general.
Andhra Bank has reduced interest rates to micro businesses by 100 basis points and for small businesses by 50 basis points. The policy change will immediately apply to both existing and new loans.
The bank has also announced that they will grant need-based ad hoc working capital demand loans up to 20 percent of the existing fund-based limits for units with overall fund-based credit facility up to Rs 10 crore.
All 28 public sector banks have reduced interest rates. While Indian small and medium enterprises will receive a reduction of 50 basis points, micro enterprises will receive a rate reduction totalling 100 basis points in interest.
With economies of Europe and US are hard-hit by recession, SMEs in India has also witnessed decline in the last three quarters of 2008. The strong linkage with agricultural sector is one reason for micro, small and medium enterprises’’ (MSMEs) economic recession. But it would...
A new national level call-centre, named Udayami Helpline is about to be launched to help entrepreneurs of the country seek information and to redress their grievances. The call centre is given a single window model with a single toll-free number to serve entrepreneurs in India. U...
