Micro units in Coimbatore seek lower interest rate

The micro units in Coimbatore district have demanded lower interest for bank loans.

In a memorandum to the Finance Minister, the Coimbatore and Tiruppur District Micro and Cottage Entrepreneurs Association (COTMA) said the micro units are the worst hit during the pandemic. They are struggling to repay the loans and hence require credit at lower interest rates.

The Tamil Nadu Association of Cottage and Tiny Enterprises (TACT) demanded loans at 5 % interest for micro units. In a memorandum to the Reserve Bank of India, it said banks and all financial institutions should give one year moratorium to the micro units for repayment of loans. The banks should not levy and those who levied should cancel the penal interest for micro units for the pandemic period. Further, the banks should extend loans to the units irrespective of their CIBIL score. The banks should not take action on the defaulters as the units are hit by the pandemic.

The COTMA said the GST for job working micro units should be reduced to 5 % from 12 %. Further, high raw material prices continue to hurt the tiny enterprises. Hence, the government should issue MSME cards on the lines of Kisan cards so that the MSMEs can buy accessories and inputs using the card. The Central government should also establish a large-scale public sector enterprise here, it said.

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Printable version | May 24, 2022 4:26:49 pm |