MSME forum seeks loans for 500 units

Coimbatore: Members of Federation of Coimbatore Industrial Associations have collected 500 loan applications from micro industrial units and submitted them to banks as some of the units were refused loans under the Centre’s Emergency Credit Line Guarantee Scheme, citing not availing term loans or cash credit limit loans as a reason. The scheme offers 20% of the outstanding loan as on February 29.
They had been collecting loan applications from micro units for more than a month. “Around 99% of applications are from micro units. They seek loan amounts only from Rs 50,000 to Rs 1 lakh,” said S Surulivel, a representative. He said they had sought loans under Mudra scheme.
“When we approached banks, only four or five of them received our applications. Later, we approached the lead bank officials, who received the applications and forwarded them to other banks,” he said.