Summary:
It also suggested a special formula for lending to small players and said that while the national banking regulator is reducing benchmark interest rates, it is not getting translated into reduced interest rates for the borrowers. This results in a situation where MSMEs have to either manage with less than adequate funding or borrow funds from micro-finance companies at very high interest rates," said a letter by Gujarat Chamber of Commerce and Industry (GCCI). It said that while funds are available to small businesses, they are not adequate and a wide gap exists in demand and supply of funds for them. Banks should be directed to pass on the benefits to commercial borrowers with immediate effect, said the trade body. Considering the fiercely competitive environment in which small businesses operate, the process of funding and granting of Environment Impact Assessment and Environment Clearance Certificate should be expedited, said GCCI..