: SIDBI to ease lending operations to MSMEs #finance #StockMarketNEWS #Business NT NETWORK Panaji “COVID-19 compelled   the banking sector to adapt technology at a furious pace as

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SIDBI to ease lending operations to MSMEs #finance #StockMarketNEWS #Business
NT NETWORK



Panaji



“COVID-19 compelled   the banking sector to adapt technology at a furious pace as technology was used to create a database of borrowers which made credit assessment easy,â€? said S Ramann, chairman and managing director, Small Industries Development Bank of India (SIDBI), during a visit to the state.



Ramann who was speaking to members of local industry at a meeting organised by the GCCI pointed out that, the National e-governance Services Ltd (NeSL) is a perfect example of how technology is used to harness data of a borrower’s debt exposure and in turn help the financial institution in loan disbursements.



He disclosed that SIDBI has computerized its lending operations and is awaiting the state government’s approval of the digital stamping system. It would eliminate paperwork and make disbursement efficient.



“There are 15-20 schemes offered to MSMEs and SIDBI Goa would be more than happy to share information on all schemes with local industry,� said Ramann.



He added that, SIDBI is open to taking over local MSME loans from banks in the state where MSMEs unit owners are facing difficulty in servicing the loans.



The SIDBI chairman was responding to request from Raj Kumar Kamat, chairman, industry committee, GCCI, to take over other banks’ loans in the state as it would relieve many businesses which are suffering due to unreasonable demands from banks.



Goan unit owners spoke about poor ease of doing business (EoDB) in accessing bank finance and working capital loans to the SIDBI chairman. They complained of too much of paper work, un-streamlined processes and duplicity in information required by numerous departments.



According to local industrial units despite lowering of interest rates by RBI, it has not percolated to the business community as banks are not forthcoming in their disbursements. A GCCI member pointed out that, a problem peculiar to the ITES industry was that its  principal investment was in its software. Therefore offering any collateral security to a financial institution to secure loans was nearly impossible.



Ralph De Sousa, president, GCCI, said that the current lending regulations are based on the brick & mortar industry. “As assets are minimal in the   IT & ITES industry it is difficult to source finance,â€? said De Sousa.



Women entrepreneurs said that, they were looking for micro finance from SIDBI.



Ramann who took over as CMD of SIDBI in the middle of the second wave of COVID was on his maiden visit to the state. The meeting was organised by the industry committee of GCCI and attended by Damodar Kochkar, president, GSIA and members of local industry.

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