"It is reprehensible for banks to take 6 months' interest in one installment" - Coimbatore industrialists lament
Coimbatore: Tamil Nadu is one of the fastest growing states in India in terms of industrial development. Coimbatore, the industrial city known as the Manchester of South India plays a stellar role in the overall growth of the state. It is an industrial district with many facets that manufactures things ranging from an unpretentious pin to a complicated spare part for a rocket.
Wet grinder and motor pumpsets are the topmost specialties of the district. In the field of automobiles, Coimbatore district specializes in making spare parts for small vehicles such as motorcycles to those of heavy-duty vehicles.
For the people from other districts and states, Coimbatore is a haven of employment. More than 6 lakh workers are employed in about 1.5 lakh companies in various sectors in Coimbatore district, but COVID-19 has tipped the scale. More than 70 per cent of companies have lost production and are unable to repay loans taken from banks due to the impact of the COVID-19 epidemic over the past 7 months.
James, Coimbatore District President, Tamil Nadu Industrial and Small Entrepreneurs Association, said, "Small businesses are facing numerous hardships during this period without even getting the minimum loan available. For rental buildings, they are facing a lot of problems like not being able to pay rents for six months at a stretch. To protect businesses from this situation, the central and state governments should give a moratorium of six more months to borrowers. The central government should take steps to provide every micro-entrepreneur with an unconditional 25 per cent investment loan in line with their annual budget through the banks through which they are budgeted."
Maniraj, Chairman, Coimbatore Pumps and Parts Manufacturers Association, said, "The central government has said that the interest on the capital loan taken by the industrialists from the banks can be split up till March next year, but banks take the money in the account as interest. For the past 6 months, many businesses have been running out of money and unable to pay the banks. After that, they paid into the bank accounts so that they could borrow and run their businesses, but the banks debited the money as interest. Thus there is a risk ofparalysis of industries again. The banks should credit back the amount that was taken as interest and provide loans to its industrial customers so that Coimbatore can find its feet again.."
Wet grinder and motor pumpsets are the topmost specialties of the district. In the field of automobiles, Coimbatore district specializes in making spare parts for small vehicles such as motorcycles to those of heavy-duty vehicles.
For the people from other districts and states, Coimbatore is a haven of employment. More than 6 lakh workers are employed in about 1.5 lakh companies in various sectors in Coimbatore district, but COVID-19 has tipped the scale. More than 70 per cent of companies have lost production and are unable to repay loans taken from banks due to the impact of the COVID-19 epidemic over the past 7 months.
James, Coimbatore District President, Tamil Nadu Industrial and Small Entrepreneurs Association, said, "Small businesses are facing numerous hardships during this period without even getting the minimum loan available. For rental buildings, they are facing a lot of problems like not being able to pay rents for six months at a stretch. To protect businesses from this situation, the central and state governments should give a moratorium of six more months to borrowers. The central government should take steps to provide every micro-entrepreneur with an unconditional 25 per cent investment loan in line with their annual budget through the banks through which they are budgeted."
Maniraj, Chairman, Coimbatore Pumps and Parts Manufacturers Association, said, "The central government has said that the interest on the capital loan taken by the industrialists from the banks can be split up till March next year, but banks take the money in the account as interest. For the past 6 months, many businesses have been running out of money and unable to pay the banks. After that, they paid into the bank accounts so that they could borrow and run their businesses, but the banks debited the money as interest. Thus there is a risk ofparalysis of industries again. The banks should credit back the amount that was taken as interest and provide loans to its industrial customers so that Coimbatore can find its feet again.."