Coimbatore: Singanallur Constituency MLA from CMK, N. Karthik petitioned through the District Collector to waive off business loan interest for six months, non-inclusion of NPA and six month time period for repayment of instalments for industries.
Coimbatore: Singanallur Constituency MLA from CMK, N. Karthik petitioned through the District Collector to waive off business loan interest for six months, non-inclusion of NPA and six month time period for repayment of instalments for industries.
In a release, he said, "The curfew is currently being implemented nationwide by the central government as a preventive measure for coronavirus infection. There are tens of thousands of small, marginal and medium factories in Coimbatore. The small, marginal and medium factories in Coimbatore, which are already struggling, are being forced into a worst-case scenario where workers cannot even pay wages without any income due to the curfew."
He said that adhering to the 3 months moratorium ordered by RBI, the banks has now implemented the same. But the curfew was enforced by the central government when entrepreneurs were trying to cut the deadline for January and February 2020, in March due to various reasons.
He added that in this case, nationalized banks have currently advised the entrepreneurs who have not paid their instalments for the months of January and February 2020 that their bank credit accounts will be declared as non-performing accounts (NPA) by the end of April 2020.
He said, "Therefore, entrepreneurs are trying to raise money and pay off the debt in various ways so that their account does not come up with an inactive account. They are trying to sell their houses, property and jewellery and are ready to pay off the bank loan instalments but the situation currently has left with no buyers as there is a shortage of funds for all".
He hence requested to avoid making entrepreneurs to be listed under NPA and instead provide them with an extended period to pay off their debts and continue their business.
He further added, "The Tamil Nadu Electricity Board has set a minimum amount of Horse Power for the factories. During this disaster, small, marginal and medium industries should be given the minimum waiver and the electricity tariff concession should be extended to 6 months to facilitate the recovery of these factories in Coimbatore".
He pointed out that the Reserve Bank of India announced that it would postpone the business loan interest and monthly instalments till June. He said, "It should be extended to September - 2020. Moreover, all banks and financial institutions do not waive the interest on loans but increase the balance of payments with the principle and thus increasing the debt burden of the entrepreneurs". MLA N Karthik has, therefore, urged that the interest on the loan be waived for 6 months.
In a release, he said, "The curfew is currently being implemented nationwide by the central government as a preventive measure for coronavirus infection. There are tens of thousands of small, marginal and medium factories in Coimbatore. The small, marginal and medium factories in Coimbatore, which are already struggling, are being forced into a worst-case scenario where workers cannot even pay wages without any income due to the curfew."
He said that adhering to the 3 months moratorium ordered by RBI, the banks has now implemented the same. But the curfew was enforced by the central government when entrepreneurs were trying to cut the deadline for January and February 2020, in March due to various reasons.
He added that in this case, nationalized banks have currently advised the entrepreneurs who have not paid their instalments for the months of January and February 2020 that their bank credit accounts will be declared as non-performing accounts (NPA) by the end of April 2020.
He said, "Therefore, entrepreneurs are trying to raise money and pay off the debt in various ways so that their account does not come up with an inactive account. They are trying to sell their houses, property and jewellery and are ready to pay off the bank loan instalments but the situation currently has left with no buyers as there is a shortage of funds for all".
He hence requested to avoid making entrepreneurs to be listed under NPA and instead provide them with an extended period to pay off their debts and continue their business.
He further added, "The Tamil Nadu Electricity Board has set a minimum amount of Horse Power for the factories. During this disaster, small, marginal and medium industries should be given the minimum waiver and the electricity tariff concession should be extended to 6 months to facilitate the recovery of these factories in Coimbatore".
He pointed out that the Reserve Bank of India announced that it would postpone the business loan interest and monthly instalments till June. He said, "It should be extended to September - 2020. Moreover, all banks and financial institutions do not waive the interest on loans but increase the balance of payments with the principle and thus increasing the debt burden of the entrepreneurs". MLA N Karthik has, therefore, urged that the interest on the loan be waived for 6 months.