Avail loans for micro & small units, entrepreneurs told

RBI Deputy GM calls for awareness on CGFSMSE Vijayawada: The Deputy General Manager of the Reserve Bank of India (RBI), G J Raju, here on Tuesday, assured total support to industrialists who establish micro, small and medium enterprises. He was participating at a meeting organised by the Federation of Andhra Pradesh Industries (FAPI) to create awareness among the entrepreneurs on the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGFSMSE). He disclosed that the Central government was extending loans to MSME sector from Rs 5 lakh to Rs 1 crore to promote industries in the country. However, the scheme was not being utilised by entrepreneurs due to lack of awareness, he said and asked the FAPI to organise similar meetings across the State to create awareness among the small and medium industrialists. He said that loans under the CGFSMSE do not require any security. Raju said that the RBI had already instructed all the banks in the country to extend industrial finance. He wanted the entrepreneurs to maintain better relations with the bankers and avail financial support under the scheme. The FAPI president, BV Rama Rao, said that the banks were extending loans to the enterprenuers under the CGFSMSE at 14 per cent rate of interest. He wanted the government to recognise industrial sector as priority sector and extend loans at 6 per cent rate of interest on par with the agriculture sector. He said that he had already represented the issue to the Central Government and asserted that he would continue to work for the cause. The Indian Bank Deputy General Manager, S Ramachandra Rao, asked the entrepreneurs to come with innovative ideas and establish units under the MSME sector to avail bank loans. He also asked them to maintain transparent accounting that would convince the banks to offer loans. The State Bank of India DGM R V Sekhar and Andhra Bank DGM G Ravi Kumar spoke. Industrialists from Krishna district attended the meeting.