Small And Medium Industries Sought Relief Package

Small and medium industries sought relief package, recommendation to extend the moratorium period to three years.

The way the lockdown has been imposed in large parts of the country to prevent the second wave of Corona, the industry is expecting its big impact.

Last year, the nationwide lockdown caused a lot of trouble to the small and medium industries and the general public.

The non-banking financial companies (NBFCs) of the country are also worried about the same situation happening this year.

NBFC has written a letter to the Reserve Bank of India (RBI) governor demanding a huge relief package for all types of micro, small, and medium industrial units, and individual borrowers.

In a letter to RBI Governor Dr. Shaktikanta Das, the NBFC organization FIDC has said that even if the account of small personal and business loan customers has been put in the NPA, it should be cleared to give them a loan again.

The major demand for FIDC is to increase the duration of the moratorium. The RBI announced a resolution package in December 2020 in which some MSMEs and customers availing personal loans were given conditional debt relief for two years.

The new demand of FIDC is that the borrowers whose loan maturity period is more than 10 years, should be given a total of five years additional time to repay it.

That is, in addition to the two years received under the resolution package, three years’ relief should be given. Similarly, a moratorium period of four years has been sought for loans with a tenure of five to 10 years.

For accounts with a loan term of up to five years, there has been a demand to extend the exemption period of the first two years to three years.

The letter, written by FIDC Director-General Mahesh Thakkar, also calls for NBFCs to fully digitalize the existing process of contacting customers and approving their applications.

There has also been a demand to give all forms of forms digitally and to make them completely legal.

After the second wave of Corona started, for the first time, the demand from FIDC to restructure the outstanding debt for the MSME sector has come up.