Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Mr. Manish Khera, Founder & MD, HAPPY- Financial Services, Investor & Board Member of Several Companies
- Mr. Neeraj Chandra, Head of Operations and Technology, Abu Dhabi Commercial Bank
- Ms. Eman Abdellatif, Senior Vice President- General Manager Acquiring Middle East, Network International
- Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
So, FIAKS had discussions with a couple of founders of manufacturing companies who are on the verge of shutting down the business. The founders of these manufacturing units kept their houses, inventory/raw material, and all possible assets as security with the banks as against to borrow loans. Well, what bank has given is only an instant sanction letter. Actual money lands in the account after several weeks of follow-ups & after hundreds of documentation submissions to the bank.
Now founders of MSMEs say, “This money is required to pay salaries and other recurring expenses at the factory. The majority of the times only 40% or 50% of the sanctioned loan is disbursed and by that time MSMEs may be forced to shut shops.”
Why banks are making it so difficult for MSMEs? Someone needs to act to set this right, isn’t it?
- Already loans to small business are shrinking during this pandemic.
- As per a report, loans outstanding to MSMEs shrank down to 7% from Rs 4.5 lakh crore as of May 22 [1]
- Though emergency credit lines have been introduced by the banks, they are cautious while lending to small businesses and not yet confident in this situation to lend loans without collaterals.
Are regulators reviewing each bank ‘Customer wise’ on Loan sanctioned Vs Loan Disbursed with TAT (Turn around Time)? Let’s understand further in detail:
REGISTER and READ the entire discussions