MSMEs demand a time period for loan sanctions and relaxed norms

The MSME bodies have demanded that central ministries clear all dues of MSMEs within a stipulated date

Officials of micro, small and medium enterprises (MSMEs) who met Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday demanded a time period for loan sanctions, limited collateral by banks, and a green light for buyer’s credit.

MSMEs continue to complain of a chronic lack in working capital that has hampered work flows and led to layoffs. “The turnaround time for requests for sanction/enhancement of limits for working capital or term loans should be on a fixed basis — based on the product and the amount of loans up to a specified amount,” said Shreekant Somany, chairman of the Confederation