Tamilnad Mercantile Bank to extend loan to 53,000 MSMEs

Madurai

KV Rama Moorthy, MD-CEO, TMB said to extend helping hand to the existing eligible micro, small and medium enterprises (MSMEs), the TMB has made arrangements to provide additional loans of 20 pc of the outstanding as on Feb 29, 2020. Instruction had been issued to all branches covering the scheme guidelines and disbursements have since started.

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.