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Last updated: 14 Oct, 2015  

Rupee.9.Thmb.jpg Bank loans: SMEs deserve friendlier treatment

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Bikky Khosla | 13 Oct, 2015

The CBI last week registered a case against some fraudulent account holders and unknown bank officials in a public sector bank, the nexus of which is alleged to siphon off black money worth over Rs.6,000 crore overseas. The federal investigation agency also raided residences and offices of a business tycoon to whom credit of Rs 900 crore was allegedly given violating norms. At a time when most of our public sector banks are reeling under high NPAs and seeking help from the Centre, these allegations naturally raise concern.

Meanwhile, a top central government bureaucrat has raised another issue. He told the media that some banks are "happily over financing" a large number of roads and highways projects without necessary due diligence. Some of the developers are even using the released money in other sectors, delaying the projects. According to a recent study, a number of under-construction road projects, with a total sanctioned debt of nearly Rs. 46,000 crore, are at a high risk of not being completed. This is alarming, and I think we urgently need new policies to prevent the banking system from rotting further.

In case of small business lending the story is quite different, however. They are neglected for no reason and hardly given a chance to prove their ability. It is true that lending to SMEs is riskier, but it is a frequent complaint among small entrepreneurs that their loan applications are rejected by banks without any valid reasons and in the pretext of going by the book. Many a time, bank managers do not even bother to respond to their loan queries. It is said, they often pretend ignorance about the government loan schemes designed for SMEs. Such complaints are a dime a dozen.

I don't believe that every banker in the country nurtures some sinister motives against small businesses, but it is equally true that over the years a false notion has been created among many of them that small businesses are bound to fail or default on their loans. There is a big trust gap, to bridge which the small business lending system must be revamped. Transparency in lending norms, clear-cut methods to evaluate and monitor SMEs' financial condition, guidance to them in loan application, etc. are some steps that I think need to be urgently taken.

I invite your opinions.

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Alternative tools to improve financing
Navin Jain | Wed Nov 18 23:52:25 2015
I agree with all the comments mentioned on this very invigorating article. I want to highlight one tool which no one in India seems to speak of but has been a significant tool of short term financing by SMEs all over the world. The product is the humble credit card!! Yes - a business focused credit card with even a small limit of say INR 50,000 can be a support for those times when an immediate payment needs to be made. What's more a credit card usually comes with an interest free period for the cardholder. Another tool which SME s should start using aggressively is accepting payment from their customers using cards. This ensures that the customers pay their outstanding to the business promptly while enjoying the free credit period from the Bank. It is true that for accepting payment using cards, one has to pay bank fees. But isn't it better to pay that 2.5 percent bank fees and be paid promptly rather than wait for 2 months for the customer to pay? Also, isn't it much more hassle free when the money can come into the bank account without having to run around chasing customers or visiting bank branches for clearing cheques, etc. The benefits of using cards as well as accepting card as a payment tool are numerous. The small business can pay their monthly electricity, telephone, mobile bills using their card on the websites of bill payment companies instead of running around to pay at physical counters. Please think about this and approach your bank today.

SME Banking
g.seenuvasan | Thu Nov 12 07:04:25 2015
It is very difficult to get the loans in time for SME's even you offer collateral security.For SME's financing Govt should guide the bank in right way as like Corporate Financing since we are ignored by the branch itself as the managers want to play a safe role while financing SME.Govt/RBI have to check the ratio of Finance given to Corporates and to SME. Advancing must be changed or revamped for SME as it should not get compared with Big businesses.Their must be separate cell needed and it should actively take part in SME's problem.Sub-contracting by larger companies to SME's should have some trusty business if not the SME's can die in half-way thro. So,we need support from bank as well from big companies.

Ganeshram | Thu Oct 22 16:37:18 2015
Since we are small , with no political backing , we will be treated like this by both GOVT and Bank. In fact many banks are thriving on our Current Accounts, and govt by our paying taxes regularly. I agree there will always be some who divert the loan for personal gains. But majority of Small business are Sincere. There should be a Bank dedicated only for Small business -If it is put into action , iam confident that this bank will be the most profitable bank in India. Hope PM and FM looks into this banking Model. Its the SME that provides livelihood to the masses. Also The maximum number of ISO certification is with SMEs God please save SMEs SME should be given special Treatment for Growth of Economy and People.

Advance against Government Order | Thu Oct 22 11:19:59 2015
Allow advance against government order to secure huge value order and provide smooth service by MSMEs We was faced earlier due to bank not sanction ADHOC limit for three months against secured order Rs.85 lakhs from Indian Navy, ultimate cancelled order on 2012years & loose confident to secure high value orders from Government organisations / Defence. We are dealing steels with Government and defence since 1986. We can secure huge high value order from Government / Defence,If bank cooprate to sanction loan each order wise & case to encourage to MSMEs and growth of Indian economy & GDP.

SME need friendly treatment from large business houses
Bhagwath Prasad | Thu Oct 22 10:30:43 2015
My suggestion to government is to bring in a legislation that any supplies made by SMES to large businesses and government organisations are to be paid in one week time , therefore the issue of banks treating SMEs doesn't arise at all , banks can restrict themselves to fund only for capital equipment and other related expenses , while working capital funding is totally removed , therefore SMEs need not waste time producing creditors , debtors list , ratio analysys etc..all of us are aware that SMEs take working capital limits only to fund bigger organisations for their procurement , many SMEs can manage wages , rentals , timely tax payments , power bills due to delayed payments by bigger businesses and government owned organisations.

Bank loans to SME
D.Ganesan | Thu Oct 22 09:23:17 2015
SME LOAN to micro and small industries sector is not encouraging due to the fact that Banks often does not want to finance them fearing it may turn NPA. It is true also. In the present situation when Modiji wants to make in India Mission a success,it is imperative that SMEs are to be encouraged, especially those who have fallen in the NPA list. Because they have invested their money and time and could not have succeeded due to many reasons. First reason is the Bankers hesitation to fund the SMEs adequately for want of collateral, though there are credit guarantee schemes for loan without collateral.Inadequate funding leads to Private financing sourcing at higher interests. When even a small fault will push the SME to default. But the existing SMEs who cannot run their business because they became defaulters are experienced, and know what not to do to become NPA. They have to be adequately refinanced. Though the MUDRA scheme announced by Modiji intended to help SMEs it has disqualified NPAs from seeking funding thus denying the really needy a chance to recuperate. But the schemes name itself meant for functioning as a refinancing agency. It is a irony. Will the Government look into this aspect and rectify the defect. Let the Government Make MUDRA a real agency to fund the unfunded and under funded and funding fund denials as an encouragement. The SMEs with their tested experience will prove their worth in increasing GDP of India.

Total amount released to loanees
Mir Inayath Ali | Mon Oct 19 11:09:00 2015
First you collect data how much loan sanctioned to rich people, industrialist, financial institutions, and how much loan sanctioned to poor people, afterward you decide the role of bankers in India.

Bank Loan small
Sandeep Rohatgi | Sun Oct 18 05:22:57 2015
It is true due to the Big Industrial NPA and Bank Frauds the small are just not supported.

Who-will-bell-the-cat situation!!!
Venugopal | Sat Oct 17 07:41:31 2015
There is only lip service for SMEs. SMEs do not carry the power connections in Politics and Bureaucracy and hence they suffer. A couple of innocuous conditions keep them miles away while Powerful connections bulldozes over everything to siphon billions. The irony is that these billions gets eroded and washed away to further strengthen these powerful hands, while had the same money spread across the SMEs would have resulted in more gains than NPAs creating a strong industrial base. My own experiences with Banks need an book than a short note.

Need to CLEAN the road to bring Positive Change
S.Haribaskaran -Mentor SME | Fri Oct 16 01:33:54 2015
Banker's Role : 1. Sanctioning Authority is fully responsible for the loan 2. Time taken to process Rs.1cr or 20 crs is same so they go for big ticket .3.Supervision is easy when number of Loan A/cis less 4.Statistics of last 2 decades shows that default in SME cases more .5 Attitude of the entrepreneur after sanction of loan and at times of problems 6.Mind set of Middle Management Officer decides the Actions of the Lower level Officers in sanctions of SME loan 7.Impractical regulations and age old Compliance By RBI and banks 8 .inadequate knowledge of the Industry 9.Under / over financing . SME 's Role: 1.Lack of transparency and System 2.Lack of finance planing and marketing 3.Delay in payment receipt -90to 150 days by OEM's 4.Hi interest rate of GAP funding 5.impractical NPA norms of RBI 90 days 6.falling profit margins 7.Hi promoters margin on the project cost [ 50 % ] both sides have there own Born of contention ,but country needs intelligent regulator to give policy and practically achievable procedures to make SME work for inclusive growth

Abhinandan | Thu Oct 15 12:12:02 2015
Sir it is high time that bigger industries, government and banks should stop exploiting SME's. SME's get beaten by large buyers, government charges 27% taxes, large industries take input and payments are never made in time by large industries. Late delivery penalties are levied but interest is never paid for late payments. In a way it is good if loans are not released by banks. Its ultimate result is more or less SME's end up wiping their capital. Agree that all bankers are not aware of government schemes.

SMEs deserves friendlier treatment
R.S. Nayar | Thu Oct 15 09:02:13 2015
Sir, i fully endorse your view point on treatment to SMEs. There can be better & softer evaluating systems, technical appraisals, financial aspects and a real evaluation of the entrepreneurs in terms of their academic & experience in relevant or other similar industry/ business. However the stringent conditions of co-lateral security need be relaxed based on other parameters of analysis and should not be appended to discretionary powers of the concerned officer as no body would like to be held personally responsible for any mishap because of unforeseen conditions despite his/her due diligence in dealing with the case. The financial assistance should be made available on more pragmatic grounds rather than merely theoretical approach SMEs. I deem SMEs need be more encouraged as it would be observed that the amount of NPA in SMEs will be much lower than the larger units although to count the number might be bigger. SMEs are a better connection for the upgradation of the society in general

SME should form Co-operative
Gope.H | Thu Oct 15 07:39:10 2015
Time has come for smart minds, to form Alliance with like minds and form co-operative, involving people from various back ground like i.t, lawyer, doctor, to make product / service better for people and planet, thus will have better influence and impact on bank and consumer, i m ready and hope to be part of such if motto is to promote vegan life style into mainstream thru daily use quality products.

SME loan ?????
Avani Mistry | Thu Oct 15 03:41:11 2015
This is really very true. The bank logic is very Simple " They are ready to finance if you have funds . " We have still not been able to understand why would anyone take a loan if they had money ?? There are banks who have "SME Factories" but that factory does not want to run and if it does it will with 100% safe margin . When ECB loans are available easily with a much lesser % interest rate ,then why should we keep begging to Indian Banks. So we will "Make in India" with Foreign funds. Indian banks are too busy giving loans to Mr Vijay Malaya , doing frauds worth 6000 Cr , so they obviously are not interested in Small Sectors. What's the point in paying high Interest rate of 14% , mortgaging your assets , providing all securities , doing tons of paper work and then getting just Peanuts with which you are supposed to do business with a good bottom line . Cause without that next year the banks will not even entertain . Go India GO .......Acche din Zaroor ayenge ....

SME Banking Woes and Make in India
Ashwin Shetty | Thu Oct 15 03:40:54 2015
I don't believe lending to SMEs is riskier. SME loans are always against more than adequate securities, co-laterals. Also risk in totality not only means default it also includes recovery, and recovering from a defaulting SME is much much easier than say a Kingfisher. Also one large default will be high multiples of all SMEs together. Secondly double digit interest rates, import duties on raw materials is major hurdle for MAKE IN INDIA. Let there be free import of raw materials, which will lead to competitive manufacture of finished goods in the country. Most raw materials in India are expensive due to inefficiency of PSUs and profiteering by Large Industrial Units. Hence free imports will surely surge SME share in MAKE IN INDIA BY INDIANS. Else MAKE IN INDIA shall remain for foreign investors and large units only.

Bank Assistance for MSMEs
S Balasubramaniam | Thu Oct 15 02:45:06 2015
I fully agree. As a Micro Unit, we have tried many times to seek financial assistance from our Bankers, State Bank of India, and they refuse to even accept our loan application. They also plead ignorance that the Credit Guarantee Scheme is not applicable, and insist on a 100% security as collateral. This obviously has put a major constraint on our ability to grow.

Delay of approving loans
Sivakumar | Thu Oct 15 02:23:10 2015
Most of our bankers in Tamilnadu are delaying in approval of loans for small sectors asking so many documents. They are approving loans for big sectors without any verification with help of bank managers. We are doing business up to sixty lakhs per annum but our bankers delaying for approval of loan for last three months for an approval of amount of ten lakhs. This would be concentrated by government.

MSME Funding
Sunil Gupta | Wed Oct 14 23:33:02 2015
You are right regarding Banks funding large units where huge outlays are at risk of the money being lost. Everyday we hear about corporate India. Rs 40,000 Crores one Steel Company, Another Rs 60,000 Crores Etc. In this type of Funding how many small scale units can flourish? It is a misnomer that MSME funding is risky.Take a lokk at NPA Volume. 86% is Corporate and 14% is others. In others is MSMEs. So how is MSME a risk? Who cares for MSMEs? The laws are violated every day by Banks, Corporates and Judiciary. The MSME Ministry and SIDBI give just lip service to MSMEs. Mine is a MSME and I was ruined by a Bank and then by an SIDBI ARC. They are all turncoats. They make only verbal promises and leave you to fend for yourself. Then come the DRTs which are nothing but a forum of Dom Rajas where Banks and Officers of DRTs rule the roost and the advocates, the DRTs and Bank personal are merrily making hay while the sun shines. I wrote to some months back on my case which can be universal for all MSMEs and if you are really serious of helping MSMEs help me fight SIDBI and Nationalised Banks. My fight is unique and will help all MSMEs.Give me an appointment and lets work together. PM says Make in India. Stand Up India. SIDBI talks of Aspiration Fund. All are bogus for no fund ever comes to MSMEs.Without MSMEs India will never stand up. Never. Think Think and Think. Talk Talk and Talk. Write Write and Write. But Where, Where and Where is the action?

Business Loan for SME
Viresh Laliwala | Wed Oct 14 22:40:27 2015
Your article is very true. I am victim of PSU Bank's dual policy to be humble to their customers (I Bank with the same Bank from last 30 years) on face and be conservative on lending. The prime security offered is much more then what is needed by Bank. I am fed up and may take up the matter with DIC - MSME and PMO office for to stop advertising to help SME. I invite if we all victims can get together.

SME Term Loan
Viresh Laliwala | Wed Oct 14 22:15:26 2015
Yes the details mentioned in your letter are quite correct. My company is victim of this situation. The Bank on face seems to be very cooperative but behind is very conservative approach. Day in and out some or the other queries are raised, before to sanction. The prime security offered is almost 400% above the terms loan asked, but the situation remains same. I am trying to sort matters with Bank, if not I am going to take up the matter with Directorate of Industries MSME, and also PMO office that they should stop promoting SME and market their own face rather then really promotion. Rest will be later.

Bank loans: SMEs deserve friendlier treatment
RAVINDRA SARDESHMUKH | Wed Oct 14 15:07:53 2015
I am of the opinion that a special drive is necessary to promote the SMEs so as to develop their business in a disciplined manner. it is a saying" drop drop makes a pond" and every aspirant does have different ideas because, he very well knows he has to come up with innovative proposals to find his place in the field. I would also like to state that before sanctioning any loan amount to such members, the financing agency or the government initiative can examine his pedigree about his financial behavior, working practices etc. nowadays, i have observed that big players are just exercising for increasing their book value just to woo the financiers. in fact no Indian conglomerate specially in the infrastructure development field is capable of organizing the complete need of the projects they have been awarded and what they really do that they hire the manpower, machinery etc. things from the small agencies and continue their show. while doing this they still have upper hand to use them as they wish. In this churning, the sufferer is always the small player. If initiative is taken to strengthen them, the projects can be executed in a well manner and also the time, money can be saved by delivering the projects in time.

Grebe Tread Footgear | Wed Oct 14 14:52:36 2015
Govt. schemes for SMEs are just schemes on papers. We tried availing the CGTMSE loans for our Business expansion , with all the documents which bank requested for. In last minute, the conditions were collateral security & 3 yrs of IT returns. Stupid banks, why would we approach for CGTMSE scheme if we had the property & 3 yr IT returns, we would rather applied for normal Business loans than CGTMSE loans. Also, i m not sure who's getting benefited of MAKE IN INDIA concept, when these guys dont support and elevate small time manufacturers.. As the editor mentioned, big guys getting funds & looting foolish banks & becoming richer. Genuine entrepreneurs are selling their properties to build their business. I am a victim of this non sense scheme and banks.

Corruption in india
Christopher Martin. | Wed Oct 14 12:15:20 2015
Until a regulated crime force is set up to regulate and prosecute the criminals corruption will continue in India. When you figure out the lost money and waste caused by this situation billions of dollars will be wasted. So sad that it continues.

My own experience -For Bank of India
PREETI KETAN SANGHAVI | Wed Oct 14 10:28:27 2015
For my Cc limit manager telling they don't have a time for my application as they have a port folio of 200cr. They made 6 month run, telling come, tomorrow,Thursday, next week etc. As I am a A/C HOLDER and having a very good business of Tea and patanjali products. As per my documents they said they provide a CC of 5 lakhs. Manager is telling if don't pay means, mene kaha Ek rupee lega to bhi chor Aur cr lega to bhi chor, to har koi cr's me hi fraud kare ga. Un Ko bada loan me interested hai kyu ki formalities me time do no me beraber hota hai. Aysa bola manager ke baad, abhi Mudra scheme ke liye pacha, to bole target Pura ho gaya. Ap form De gaye, vapas jub dusri bar scheme hoga, to bole ge. Vo bhi form 50000 Wala d ya. Even I went and met nodal officer of the bank, but no use. Kuch nahi hua. Please sir I want to reach this message to our PM Narendraji,arun jaitley, Rajan sir. As they were trying to reach up to common people, but no use. I have a very good business opportunities but lacking because of funds. Like me so many other people were also there who is suffering. I want them not to suffer or take any drastic step. Please like manager should punished. If you want I give the names also. Awaiting for a positive response. Thanking you PREETI KETAN SANGHAVI

Business loan is only for showcase (SME)
Ajit | Wed Oct 14 07:38:55 2015
Centre govt offer loan scheme like in a showcase but not open or if open then bank will back PM said to foreigner MAKE IN INDIA. but how to made If govt support like SME loan or ,offer collateral security for loan then no need to invite foreigners for buss.

SME deserve better...
R V Subramanian | Wed Oct 14 07:12:42 2015
1- one side banks give loans to big players , blindly believing them. 2- other side you can see angel investor pumping crores & crores to the start ups . Poor SME's no one to help .why????? Why can't these angel investors invest in our SME s Which will create real business & more jobs .

SME Loans
Sid | Wed Oct 14 07:00:59 2015
Yes I agree 100% with the opinion that Bankers do not treat SME Loans with seriousness. Especially PSU Bank Managers get misled into fancy proposals by large customers but hardly consider even better proposals from SME's. They harass the SME for all kinds of useless paperwork, but will bend over backwards for a large customer. I heard one anecdote where a PSU Bank Manager went to the airport to get signatures from Vijay Mallya on his private aircraft (who as everybody knows is under CBI investigation for fraud), because Mallya did not have time to go to the bank. And guess who the loan was for - Kingfisher Airlines. So my request is authorities like RBI need to get involved and try to make PSU banks more friendly to SME's. In fact I feel that they need to reserve a portion of loans to SME's and judge any banks performance by how many loans they have given to SME's. Otherwise loans to big fraudsters like Mallya will just continue.

  Re: SME Loans
ER.AMAR SINGH | Thu Oct 15 11:00:37 2015
This is the real fact, larger is the facility, the greater will be the personal interest. SME's means extreme risk for the Bank and the entrepreneur as the unfair competition is with black money market. Further,the failure will amount to total self destruction as the agreements are one sided with no term in the interest of SME. The trial is in favour of Bank and no defence with entrepreneur. The tax laws do not favour SME's operating through Bank Loans.

  Re: SME Loans
zulfiquar | Thu Oct 15 12:20:48 2015
Agree with u all NPA is of big company, no action, should all NPA bank PSU be closed. Why inject the cr of money in banks that have NPA. 

CK Murali | Wed Oct 14 06:51:24 2015
How can SME take a loan at 14% interest and compete with their product manufactured by larger industry at lower cost ? How to compete with cheap import from China ? In spite of many Govt agencies, is there any one sincerely advising, guiding or mentoring SME entrepreneurs to make a break-even ? The heavy tax, interest and market competition, will retard the growth of SME. Banks are surely not interested as bankrupt rate is very high. Govt should rather encourage to form mentoring NGOs on time based profit sharing basis to walk SMEs to stability. Retired professional may consider to form such clusters of mentor clubs across the country. When banks are confident on the mentors, they will be more confident to finance SMEs rather than to a green horn company.

Loans and Advances to SMEs
RAJEEV NAYAN GHUWALEWALA | Wed Oct 14 06:33:26 2015
Normally Small enterprises are started by entrepreneurs with limited resources & have to manage operations with great difficulty under horrifying adverse circumstances and many a times pass through a situation which according to Banking norms called NPA or defaulter. It's unfortunate that Bankers' notion towards them happens to be " ONCE A DEFAULTER/NPA ALWAYS A DEFAULTER/NPA". Banks do not differentiate between a WILLFUL Defaulter and GENUINE DEFAULTER. Willful defaulters usually are large enterprises whose promoters are rarely declared defaulter and quite conveniently accommodated for further loans and advances even without any or very little collateral security. In spite of Government's acclamation of Small Industries being the backbone of economy, no genuine efforts or action is taken in the right direction. Norms for extending advances need to be revisited. There are many small enterprises with good amount of business on hand failing because of fund crises.

SME Loans: Needs friendly Support
Sandeep Gautam | Wed Oct 14 06:17:54 2015
Thanks for the Topic & Discussion Invited. It's all clear that no body is in India is giving help to SME. Only fake discussion are their. All Banks Manager are not even disclose the policies of Loan to the people those are approaching to them for their Loan request. I personally feel that a Big Gap is their between Theoretical & Practical. Their may be few who get help. but maximum entrepreneur skilled are failed due to short of money, and they never get easy guidance or answer from Banks. Govt. Leaders give different pictures but reality is different.

SMEs don't find favours of Bank
Parag Paul Choudhury | Wed Oct 14 05:32:49 2015
The banking sector in India is in a working mould of 50s. Both Private and Public sector has same style of functioning as the people appointed in Pvt. sector are all from Govt. Banks. I do business in Australia and I see how the SMEs are supported by the banks. Private sector Banks must become SME friendly and less rigid to get business and grow, otherwise the top heavy banks will continue to loose in the the way they are loosing.

Bank loans: SMEs deserve friendlier treatment
Shivesh Gupta | Wed Oct 14 05:06:49 2015
I do agree with your opinion and this is prevailing since long, more prominently in public sector banks. But I think I had a solution to this, may be I am wrong but I wish to state. It lies in the developing and utilizing the third party for the job or one can say out sourcing the decision making process for the eligibility of loan demanding party. We know a bankers will be more efficient in banking processes and their expertise will be better utilized in financial management rather than inquiring and spying the customers or later involve in getting money back. However there are specialized agencies are available who will do the job for the bank, however final decision making power is certainly lies with the bank. this not only saves the time of bank officials but will be economical too. This process will be more transparent in nature and widely acceptable too. When third party is involved actively in decision making process for checking compliance on non compliance of borrower, they will also be responsible and accountable for repayments, and bankers will be more comfortable with their core job and free from stress of being held responsible for generating NPA. I am sure that NPA will certainly reduced with this and banking process will more transparent and borrower friendly without discrimination. regards

Engr. M.Hyder Hossain | Wed Oct 14 04:55:59 2015
My PMEGP loan for an amount of RS.5 Lac is pending for 17 months. Product is awarded by COMPASS & FOSMI. President FOSMI has written to concerned minister also. Bank is now delaying in the plea of CIBIL score after 17 months. CIBIL score is 774. The project is joint venture with Bangladesh and at the verge of cancellation with huge financial loss. Who will take up the case for proper clarification from the Bank ? This is an ideal case in line with your article. Thanks for your concern.

SMEs & Banks
Jail the Banksters | Wed Oct 14 04:45:22 2015
There is a reason why the Bankers are called Banksters. It is high time that these banksters get charged for their crimes and the banks nationalized. The banksters create ,,money'' out of nothing. They simply credit an account with computer digits, and this is called money. For this ,,money'' we all have to work very hard, and some loose everything to the bank. They loose assets to the banks that have value, in exchange for money that the bank never had in the first place. That is absolutely criminal, and a stop needs to be put to this.

Getting loan for business is very difficult
Smita J | Wed Oct 14 04:26:41 2015
Government has launched many loan schemes but managers show ignorance about schemes. Even when all documents are clear manager refuse to sanction loan by saying quota for that scheme is still not received. My bank manager refused to sanction my loan as I am divorced. They are not ready to take risk for small businesses instead they just reject. Manager ask me to increase loan amount above 10 lakh ,then he is ready to sanction my loan.

Indeed lot more is expected
Ravinder Sokhal | Wed Oct 14 04:25:16 2015
Its rightly highlighted banks has been more focused on corporate segment where even though default ratio is higher on top of it recovery process is long. At the same time small traders or SME has difficult time as they don't have dedicated professionals to make balance sheet and other relevant documents to look attractive enough for loans. I guess not only banks are at fault but also SME also needs to be educated for rightly approach to banks.

Financing the SME
Dilip | Wed Oct 14 03:33:16 2015
Rarely I see discussion on what employees pay to get their jobs, any job, in railway, government enterprises and also the private corporations, like BoB. I believe a lot of money is paid to get their jobs. This leads to scandals in jobs. If we want to control corruption, we must control how jobs are filled. Naturally, bank loans are not available to almost anyone without under table payments. Our society is corrupted that such payment are considered normal.

Banks Ignore small traders
Mahinder | Wed Oct 14 03:02:46 2015
This is 100% true.all the govt sectors bank treat very bad,avoid or will deny for loan to small business persons.Even private sector banks ICICI & HDFC do not keep provisions for small business loans.Private sector banks prefer personal loans,credit card loans to take so much profits from small business man,ordinary citizens.Govt should cancel licenses of these banks.

Bank Loans
S R RAMA SUBBAIAH | Wed Oct 14 01:24:32 2015
It is true constant Re-look is required at the various Policy Provisions concerning Bank Loans for corrections & improvements. Interpretation of Rules by Bank Managers is what causes either the Grant or Rejection of any Loans. SMEs have to carefully step up their cordiality of relations with Banks as their Partners to ensure continuously timely favourable help and avoid getting entangled into the knots of financial problems.

Small business to be developed to enhance the power of next Generation
Dr.K.Karthikeyan | Tue Oct 13 23:02:23 2015
Uneducated Politicians,business tycoons mint Indian poors money and saving it in rich countries. Mahatma Gandhi once got donation of 1/4 anna (2 paise) from a poor servant. That servant gave him for the fund collected for independence movement. That money she have it to feed milk for her child. Mahatma Gandhi accepted that 2 paise. When he attend the public meeting he explained this incident of getting the money from the poor servant and he ask permission from the public to keep that 2 paisa with him to remember that the money came from a very poor servant that also kept to feed her child. Every time he spent for anything he want to remember that the fund are all coming from very poor people and need to spend properly. But nowadays ugly politicians and millionaires sweeps money from various resources and keeping it for their family. Where is patriotism? How we are going to develop India? We need to educate children from the age of 3 about our country and the leaders who fought for freedom and need to live a disciplined life and how to bring our India a super power. We have a live role model country Japan where they are destroyed completely in the second world war and developed with a greater ascent and in greater discipline. Parents teachers and schools should play a major role to make a better change in India.

  Re: Small business to be developed to enhance the power of next Generation
DR B V JHA | Wed Oct 14 07:33:22 2015

  Re: Re: Small business to be developed to enhance the power of next Generation
JKM | Fri Oct 16 17:58:16 2015
Govt is expected to intervene in loan processing by collection of MSME/business loan applications and forwarding to the client needed bank after finalizing the document formalities and suggesting the bank to offer loan to SME/MSME/business loan taker . Here i expect govt to stand as a supportive body to MSMEs ,entrepreneurs which would sure boost bank officials to enhance their progress in dispersal of loans then only we could be sure that India would progress a nation of self productive and a major industrial developed country where cr ores of unemployed gets employment everywhere find peace and happiness let us follow the process followed in China and we need assurances to new entrepreneur a boosting hand by the government in its ups and downs .

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