Welcome Guest

Businessex.Com
Home News Cut lending rates, says survey while Union Bank lowers it by 300 bps

Cut lending rates, says survey while Union Bank lowers it by 300 bps

Tags: RBI, SMEs, Union Bank of India, 300 bps, interest rate, ASSOCHAM, survey, credit flow, growth

July 02, 2012 | COMMENTS ( 0 )

Cut lending rates, says survey while Union Bank lowers it by 300 bps

The Reserve Bank should immediately cut policy rates by 1- 1.5 percent as high interest rates are impacting the business of small and medium units, says a survey conducted by industry chamber ASSOCHAM. While in a parallel development, public sector lender, Union Bank of India reduced its interest rates for the micro and small enterprise (MSE) sector up to 300 basis points with effect from July 1.

A majority of small and medium units surveyed said high interest rates are impacting their business and RBI should immediately cut interest rates between 1 percent and 1.5 percent to help revive the growth of the industry, ASSOCHAM said.

"High rate of interests have a negative impact on business as the organisations droop under the burden of ever-rising lending rates," the survey revealed.

However, the rest of respondents said it will not impact their trade much as they are not heavily dependent upon bank finances, it said. The chamber said it has surveyed about 100 SMEs across the country.

On the other hand, aiming to boost MSME credit flow, "The revised interest rate structure for micro and small enterprises is quite competitive and attractive. This will be very much affordable to micro and small units and will help the bank to boost its MSE credit portfolio," Union Bank of India stated in a release.

Other measures taken by the bank are targeted credit flow to MSME, driven through 350 MSME-focused branches known as Business Banking Branches and through more than 30 clusters identified to cater to the credit requirement for exclusive activities under micro and small enterprises, it added.

RBI, however, in its mid-quarterly review of the monetary policy on June 18, has kept policy rates unchanged in view of rising inflation and global economic uncertainty.

Please add your comment

Rating
Not readable? Change text.
Enter the characters as seen on the image (case insensitive)
  Notify me of followup comments via e-mail   Subscribe for daily newsletter

Other NEWS

Delhi based startup i2e1 raises $5,00,000

Delhi based startup i2e1 raises $5,...

December 10, 2015

Delhi-based i2e1, a smart network player platform which aims to provide low-cost and free internet to consumers and actionable ana....

Cab aggregators collaborate with state governments to boost entrepreneurship

Cab aggregators collaborate with st...

November 06, 2015

Ola and Uber, cab aggregators have signed agreements with Rajasthan government for skill development and creation of entrepreneuri....

Phase II of startup incubator T-Hub to be operational soon

Phase II of startup incubator T-Hub...

November 04, 2015

Telangana government is planning to expand T-Hub, its ambitious incubator programme, in its second phase with about Rs 150 crore i....

Sabse Technologies receives investment from Ratan Tata

Sabse Technologies receives investm...

November 04, 2015

Global telecom carrier, Sabse Technologies Inc, started by Hotmail Founder Sabeer Bhatia today announced that Tata Sons' Chairman ....

Mobile startup BlackNGreen seeks international expansion

Mobile startup BlackNGreen seeks in...

November 02, 2015

Buoyed by a strong demand for value added services, mobile startup BlackNGreen is eyeing revenue of Rs 350 crore in the next one y....

Startups seek better future under Hay Group's programme

Startups seek better future under H...

October 30, 2015

Global management consultancy, Hay Group will help 100 selected entrepreneurs transform their startups into successful companies o....

Quintype raises USD 3.25 million for product enhancement

Quintype raises USD 3.25 million fo...

October 27, 2015

Quintype, a data-driven publishing company raised USD 3.25 million to enhance product and business development. ....

Hospitality aggregator startup Qik Stay raises $250K

Hospitality aggregator startup Qik ...

October 27, 2015

Delhi-based Qik Stay, a hotel branding and aggregator startup, has raised $250K in seed round of funding from venture capital firm....

Milk Mantra targets a turnover of Rs 150 crore this fiscal

Milk Mantra targets a turnover of R...

October 26, 2015

Odisha-based startup dairy firm, Milk Mantra is targeting a turnover of Rs 150 crore this fiscal.....

Vista Rooms creates app on Instagram, targets tier II & III cities

Vista Rooms creates app on Instagra...

October 23, 2015

Mumbai-based online budget accommodation aggregator, Vista Rooms has created an app-like experience on Instagram where travellers ....

Jiyo Natural receives funding from Indian Angel Network

Jiyo Natural receives funding from ...

October 23, 2015

Indian Angel Network (IAN) has invested an undisclosed amount in Bengaluru-based consumer health food startup, Jiyo Natural.....

​​Vodoo raises USD 1 million from SAIF Partners

​​Vodoo raises USD 1 mi...

October 15, 2015

Deals and price comparison application, Vodoo has raised USD 1 million (around Rs 65 lakh) from SAIF Partners in a seed funding ro....

IBM launches public data centre in Chennai, partners with Nasscom to boost start ups

IBM launches public data centre in ...

October 15, 2015

Technology giant, IBM today launched public data centre in Chennai to tap into growing demand from financial services and governme....

For Nasscom, PPP will boost startups in India

For Nasscom, PPP will boost startup...

October 14, 2015

In the wake of some reservations over the central government creating startup funds, Nasscom's "10,000 startups" Vice President, R....

WalmartLabs to seek partnership with Indian startups

WalmartLabs to seek partnership wit...

October 14, 2015

WalmartLabs, the digital arm of US-based retailing major Walmart Stores, is scouting for startups in India for partnership and wor....