Tamilnad Mercantile Bank (TMB) plans to provide loans to 53,000 MSMEs under Guaranteed Emergency Credit Line scheme.
K Nehruprakash, President, Thoothukudi District Tiny and Small Scale Industries Association (THUDITSSIA), when contacted, said it would give the much needed impetus to the MSME sector.
But, stakeholders would possibly encounter difficulties in availing the facility. Though the Finance Ministry made it clear to release loans through this scheme without additional collateral security, no banker seemed to implement it. But bankers had been insisting on levying stamp duty under memorandum of deposit of title deeds and registration charges additionally, citing RBI norms.
The MSME stakeholders would face further hardship, if such registration charges and new formalities were mandated. Hence, state government should consider legitimate concerns and waive off such registration charges. Interest rates were fixed at varying rates from 7.5 to 9.25 per cent, against an anticipated six per cent, he reasoned.