Compound interest waiver: Madurai MP wants increase in ceiling of loans

Welcoming the move to provide the waiver on compound interest for loans up to ₹2 crore, Su. Venkatesan however said that the ceiling needed to be increased, as it would not benefit medium industrial units

Madurai MP Su. Venkatesan, has appealed to Union Finance Minister, Nirmala Sitharaman, to increase the ceiling for the waiver of compound interest on loans for the moratorium period, following the COVID-19 lockdown.

Welcoming the move to provide the waiver on compound interest for loans up to ₹2 crore, Mr. Venkatesan, said that the ceiling of ₹2 crore would not benefit medium industrial units. Pointing to the affidavit filed by the Centre in the Supreme Court revealing its inclination to provide the compound interest waiver for the moratorium period, Mr. Venkatesan said that ₹2 crore was a very low amount.

“This has created concern among MSME entrepreneurs on whether this would really benefit them to emerge from this severe crisis. Hence the government has to increase the ceiling for the waiver prescribed for loans to the MSME sector in such a way as to cover all Micro, Small and Medium industries,” he said. Besides, he said that the decision for the waiver should cover all kinds of financial institutions including non-banking financial institutions and said he expected announcement in this regard with much more clarity.