Right from the Prime Minister, FM, MSME minister, CMs and every officer in this country will pay floral tributes to Micro and Small Industries and their contribution to the Economy. But, when it comes to serving these Micro and Small enterprises, every one is doing only a lip service particularly in offering credit and other finance related services.
When a leading air line company is not able to pay back it debts amounting to several thousand crores SBI the lead bank comes forward to convert it into Equity. Whereas a small Micro unit having borrowed a few lakh rupees is not able to repay it and asking for the reschedule, the banks apply SARFAESI and take over the little assets and auction it. They are not even prepared to listen the grievances of the Entrepreneur.
Every banker is saying that Entrepreneur themselves are not interested in availing loan under CGTMSE stating that they need to pay 1% more as Insurance premium and they are ready to offer collateral security. But, unfortunately, these bankers do not educate the Entrepreneur that they have to shell out thousands of rupees as fees to the Engineer and Advocate for getting the valuation certificates, Legal opinion and over and above that they have to pay 0.5% as Stamp duty for registering the deposit of title deeds with the bank and registration charges and other expenses at the Registrar office.
Regarding rate of interest, any amount of our representation to the authorities did not yield any response. Cost of Finance is one of the major input for a MSE. Let us hope at least our recommendation for interest subsidy is granted by the Tamilnadu Government.
When a leading air line company is not able to pay back it debts amounting to several thousand crores SBI the lead bank comes forward to convert it into Equity. Whereas a small Micro unit having borrowed a few lakh rupees is not able to repay it and asking for the reschedule, the banks apply SARFAESI and take over the little assets and auction it. They are not even prepared to listen the grievances of the Entrepreneur.
Every banker is saying that Entrepreneur themselves are not interested in availing loan under CGTMSE stating that they need to pay 1% more as Insurance premium and they are ready to offer collateral security. But, unfortunately, these bankers do not educate the Entrepreneur that they have to shell out thousands of rupees as fees to the Engineer and Advocate for getting the valuation certificates, Legal opinion and over and above that they have to pay 0.5% as Stamp duty for registering the deposit of title deeds with the bank and registration charges and other expenses at the Registrar office.
Regarding rate of interest, any amount of our representation to the authorities did not yield any response. Cost of Finance is one of the major input for a MSE. Let us hope at least our recommendation for interest subsidy is granted by the Tamilnadu Government.
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Dear Mr.Gnanasambandan
Thanks for accepting to participate at
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and posting on msme issues
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