Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
2012-07-02

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

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.

Related opportunities
  • Tea and Coffee Chain
     About Us: Paparoti: Malaysia’s leading coffee chain popular for its innovative buns...
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2019
    Investment size Rs. 50lac - 1 Cr.
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi Delhi
  • Mobile & Communication/Internet Connections
    About Us: In 2009 Gerardo Taglianetti, founded Phonup amongst first companies  in..
    Locations looking for expansion Delhi
    Establishment year 2009
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Snacks / Namkeen shops
    About : • Established in the year 1992, National Chikki is..
    Locations looking for expansion Maharashtra
    Establishment year 1992
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Others Food Service
    About Us: Kake Di Hatti, an iconic eatery located in the..
    Locations looking for expansion Delhi
    Establishment year 1950
    Franchising Launch Date 2009
    Investment size Rs. 20lac - 30lac
    Space required 900
    Franchise Outlets 20-50
    Franchise Type Unit
    Headquater Delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts