MSMEs in Coimbatore call for an increase in the upper limit of unsecured automatic loans
Coimbatore, May 11 (KNN) The Coimbatore District (Codissia) Small Scale Industry Association has proposed to Union Finance Minister Nirmala Sitharaman to increase the upper limit of automatic unsecured loans for MSMEs.
The association said the move will help units secure funding for operational liabilities and restart businesses.
Presenting the demands of MSMEs, Codissia, President MV Ramesh Babu urged the government to set up a separate committee to study and define parameters for MSMEs so that they have easy access to funds.
Highlighting the credit challenges faced by MSMEs, he said credit institutions insisted on high credit ratings and security guarantees, which many small borrowers did not have.
MSMEs are caught up in complex eligibility factors and paperwork as they are unfamiliar with digital lending channels, delaying access to finance and liquidity, he added.
Codissia also called for setting the money margin for micro and small businesses at 10% and announcing a waiver of loan processing fees. (KNN Office)