Summary:
Some first generation entrepreneurs were asked collateral security just to create a binding to the loan. Ramakrishna Rao said the bankers were insisting on collateral security though it was not required for loans of up to Rs.10 lakh. Insistence on collateral security by the banks was one of the key complaints that figured at an awareness meeting organised by the Andhra Pradesh Chambers of Commerce and Industry Federation here on Wednesday. more-inBankers in the State are accused of flouting Reserve Bank of India (RBI) guidelines on collateral free loans for micro, small and medium enterprises (MSMEs). One major aspect that emerged from the discussion was that many were not aware that loans of up to Rs.10 lakh did not require any collateral security..