JAMSHEDPUR: Traders above two Lakh Division Kobhan welcome the announcement of the workers’ government to include wholesalers and retail in small and medium micro categories (MSMEs).
Many trader associations say the transfer of Prime Minister Narendra Modi will help traders-hit by Covid restore their business by utilizing the finances needed from banks and other financial institutions under the priority sector loan category (PSL) only enjoyed by MSMEs, so far.
Suresh Sonthalia, National Secretary of the Confederations of all Indian traders (CAIT), said, “The announcement has come at the right time.
This will help eight crore and retail traders and retail, including more than two traders Lakh Kobhan who was hit by Covid Pandemics, revived business They are by utilizing the necessary finance from the bank.
“He added that the interest in the loans available under PSL is generally lower, starting from 1% to 1.5% compared to interest charged to routine loans.
In particular, traders are recognized under the MSME sector in the past but in 2017 the union government did not exclude them on the basis that this sector did not contribute to manufacturing activities.
Singhbhum Chamber of Commerce and Industry (SCC) Secretary General Bharat Basani, “Sustainable campaign and several representations to the Government in the past four years by the trading community finally produced encouraging results in the form of the inclusion of wholesalers and retailers.
In the MSME sector.” He said the benefits of Tag MSMM is that each bank is under the obligation to provide 6% of the total loan amount to the PSL category.
Jamusary Jamshedpur Vastra Sangh (JVVS), Anil Modi, said with retailers who came under Ambit MSME, they will now be eligible for the Mudra Pradhanmantri loan scheme.
“Beneficiaries can take advantage of loans to Rs 10 Lakh without guarantee guarantees under the Mudra loan scheme,” Modi said.
School books and study material retailers, S N Pathak, said the government’s announcement was positive but it still had to be seen whether they could also benefit from the bank without difficulty.
He said normally, only recognized companies had access to bank finance in the past.
“Banks have limited funds for PSL category loans.
Therefore, we must wait and see if small applicants will get the same access to funds or traders who will get it,” Pathak added.
An additional owner of an additional unit based in the city said competition for loans under the PSL category would increase in the coming months.
“Banks prefer to provide loans to less risky businesses and retail less risky than establishing additional units.
Therefore, there are fears that traders may take part of the loan under the PSL category,” said the businessman.