Sitharaman seeks 200 bps lending rate cut for MSMEs
The Dollar Business BureauUnderscoring the need to cut high borrowing costs for the small and medium enterprises (SMEs), Commerce Minister Nirmala Sitharaman on Wednesday pitched for a 200 basis point slash in the benchmark lending rate, while eyeing a fresh approach to lending to the SME players. “I still hold that the cost of credit in India is high. SMEs, which create a lot of jobs and contribute to exports, are all hard-pressed for funds. And for them, approaching a bank is no solution because of the prevailing rate of interest. I would recommend a 200-bps cut, and I have no hesitation to say this,” Sitharaman said, emphasizing that there is a dire need to provide cheaper credit to the manufacturers ...
India Inc seeks immediate transmission of rate cut
The Dollar Business Bureau Welcoming the RBI’s decision to reduce its lending rate for banks by 0.5%, various trade and industry bodies have asked banks to pass on the benefit to borrowers so as to improve cash flow in the economy. The Reserve Bank of India (RBI) in its fourth bi-monthly monetary policy review on Tuesday reduced the repo rate from 7.25% to 6.75%. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the cut in interest rates needs to act as a demand push at the consumer level and should help revive investment cycle, especially in the private sector. “The trouble has been aggravated by a high level of debt in the private sector which makes it onerous ...
