It is noticed that the Public Sector & Private Sector Banks have grandiose plans under SME scheme for lending to entrepreneurs. However, to our dismay we notice that they insist for collateral security which is contrary to RBI guidelines under CGFTS Scheme. How should one tackle this malaise of banks not lending to MSEMs Under CGFTS Schem?
In the rationale for the launch of this Credit Guarantee Fund Trust Scheme, it is mentioned that considering the difficulty faced by SSI units in providing collateral security for bank loans, the scheme was introduced for ensuring easy access to bank credit by such units. If the main purpose itself is defeated, then you may approach the Ombudsman appointed for that Bank or lodge a complaint with RBI with the details of all correspondences with the Bank, say, your application to the Bank, their response etc. Regards G Anandhi