Home / Knowledge / News / Textiles / FICCI welcomes loan-restructuring window for MSMEs

FICCI welcomes loan-restructuring window for MSMEs

04
Jan '19
FICCI welcomes loan-restructuring window for MSMEs
The Federation of Indian Chambers of Commerce and Industry (FICCI) has welcomed RBI’s move to provide a loan-restructuring window for MSMEs with loans up to ₹25 crore. RBI has decided to permit a one-time restructuring of existing loans to MSMEs that are in default but ‘standard’ as on January 1, 2019, without an asset classification downgrade.

The restructuring has to be implemented by March 31, 2020.

“This will provide a much-needed boost to the small and medium enterprises that had been reeling under financial pressures on account of reasons beyond their control,” FICCI president Sandip Somany said in a press release.

MSMEs are the backbone of the Indian industry, but generally face greater vulnerability on account of the payment mechanisms which came under greater stress in recent times. The tight liquidity situation in the financial markets only exacerbated the problems faced by the MSMEs and a measure like the one announced by RBI was clearly needed to support these units, the release said.

“The relief comes at the right juncture and will provide the much-needed momentum to push the growth levers as MSMEs make a significant contribution to domestic output, exports as well as job creation,” said Somany. “The RBI scheme should provide an incentive to the lenders to look at restructuring of the loans extended to MSMEs in a more pragmatic manner and we hope that it will also expedite decision making in this regard.”

RBI’s relief window for MSMEs together with other measures announced by the government for easier and affordable access to credit such as interest subsidy on loans should help in reviving growth of MSMEs and provide an added impetus to push the overall growth of the economy upwards of 8 per cent, the release added. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 26th Oct 2020

25% Bangla garment manufacturing to be automated by 2023

A quarter of garment manufacturing activities in Bangladesh will be...

Pic: Shutterstock

Textiles | On 26th Oct 2020

BCI to cease all field-level activities in China's XUAR

Sustained allegations of forced labour and other human rights abuses...

Pic: Burberry

Information Technology | On 26th Oct 2020

Burberry launches gaming technology for fashion design

Burberry, and digital production agency, Koffeecup have joined hands...

Interviews View All

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Top executives, Fashion houses, India

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Poojaa Kumar Deepak, Zeven

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Sandip Bhojani, Manthan Patel,

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Atul Mittal,

Atul Mittal

Established in 1997, Pratibha Syntex produces over 60 million pieces of...

DP Kumar,

DP Kumar

Weaves is South India's premier textile fair organised by Texvalley in...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search