BANKS – MSME – EXPECTATIONS

WE THE ASSOCIATION WORKING FOR INCEPIENT SICK ‘MSME’ UNITS EXPECT THE FOLLOWING FROM THE BANKS BEFORE INITIATING RECOVERY PROCEEDINGS:

1. GOVERNMENT INCENTIVES: CONSIDER AS INCENTIVES DECLARED, ASSURED BY THE CENTRAL, STATE GFOVERNMENTS AS SECURED RECOVERY FOR CALACULATIO OF ‘NPA’ .
2. RE SCHEDULEMENT OF LOANS: MANY OF THE LOANS GIVEN TO ‘MSME’ UNITS ARE FULLY SECURED BY COMMERCIAL, PERSONAL, GUARANTORS’ PROPERTIES AS COLLATERAL SECURITY. HENCE THE RISK TO BABNKS IS MINIMUM. BASESD ON SECURITY AVAILABLE WITH THE BANKS, TO CONSIDER LIBERAL RE SCHEDULEMENT.
3. RECOVDERY PROCEEDINGS: NOT TO INITIAT RECOVERY PROCEEDINGS UNTIL THE LOANS ARE SECURED BY COLLATFERAL. GRANT LIBERAL ENHANCEMENT. GRANT TIME TO BORROWER TO REPAY IN SMALL AMOUNTS.
4. SEIZURE OF ACCOUNTS: REQEUST BANKS NOT TO CONVERT THE LOAN ACCOUNT AS ‘INOPERATIVE’ TO BE ELIGIBLE TO PAY DAY TO DAY PAYMENTS, RAW MATERIAL SUPPLIERS, POWER BILLS, LABOUR PAYMENTS.
5. GRANT RECOVERY IN INSTALMENTS: THE BORROWERS WILL BE READY IF 5% TO 10% OF SALE PROCEEDS ARE APPROPRIATED TOWARDS LOANS EVEN AFTER BECOMING ‘NPA’ UNTIL OVER DUE IS RECOVERED. THE UNIT WILL BE FUNCTIONING, LABOUR EMPLOYMENT WILL CONTINUE, BANKS WILL GET RECOVERY.
6. MEDIATRORS: APPOINT MEDIATORS TO UNDERSTAND THE PROBLEMS FACED BY THE UNITS AND DEAL CORDIALLY WITH BANKS AND MSME UNIT TO RE BUILD CONFIDENCE, TRUST.
7. BORROWERS INTENTIONS: NO BORROWER WILL BE WILLING TO FORE GO ENTIRE LIFETIME INVESTMENTS, PROPERTIES, SAVINGS, CREDIBILITY IN THE MARKET. HE IS ULTIMATR SUFFERER. MAKE HIM EARN, REPAY THE LOANS, LIVE WIH RESPECT.
8. RECEIVABLES: SANCTION LIBERAL LOANS AGAINST RESCEIVABLES, DEPOSITS WITH VARIOUS DEPARTMENTS, FINISHED STOCKS, PROCESSED GOODS.
9. ADDITIONAL FINANCE: MANY OF THE ‘MSME’ UNITS MAY NOT NEED ADDITIONAL FINANCE, BUT THEY NEED MORE TIME DUE TO LONGER PERIOD OF MANUFACRUTING PROCESS, SALES, RECEIPT OF SALE PROCEEDS ETC.
10. INVESTORS: MANY ‘MSME’ UNITS WILL GET OPPORTUNITITES FOR INVESTMENTS BY STRATEGIC INVESTORS, SHORT TIME PURPOSE, NEED BASED BY PURCHASERS ETC. ALLOW THEM TO INVEST AND EXIT BASED ON THEIR TERMS WITH UNITS. THERE IS NO RISK TO BANKS.
11. GOVERNMENTS ROLE: IF MANY INDUSTRTIAL UNITS ARE SUCCESSFUL, NEW INDUSTRIES WILL COME WITH MORE INVESTMENTS, NEW OPPORTU ITIES OF EMPLOYMENT, ADDITIONAL REVENUE, IMAGE OF THE GOVERNMENT WILL IMPROVE.