Banks might allow the MSMEs more time to repay the loan

All those small businesses can get some extra time for the repayment of the working capital loans they have taken. According to the Indian bank association,drawing power by reducing margins or by reassessing the working capital cycle for the borrowers”.it was proposed by them to the Reserve bank of India.

But some banks are still haven’t done it whereas some have started working on the same projecr. According to them,However, it is taking time because credit committees of individual banks will have to approve it,” the first person said, adding India’s largest lender State Bank of India (SBI) has prepared a protocol for extending the working capital cycle and most banks are followingCoronavirus, Covid-19, Corona it.

Vikram aditya singh, the executive director of BOB said- “I have proposed a plan to reduce margins and reassess working capital limits. We are looking at this model and are expected to come out with this shortly. See, the norms will be slightly relaxed under the new framework, appreciating the difficult times that they are facing.”

So it can be a great opportunity for all those businesses who are struggling to get some payment during this lock down as they are going to have some extra time for paying the loans they have taken from the banks. It will be a good chance for all of them indeed.