MSMEs are seriously concerned about the implementation of the emergency COVID-19-related packages meant as relief for industry as they face innumerable difficulties in accessing benefits at the level of banks, according to Karnataka Small Scale Industries Association (KASSIA).
For one, guidelines issued under the Emergency Credit Link Guarantee Scheme (ECLGS) are not uniform and different banks have framed their own guidelines leading to confusion and hardship in making use of the schemes at a time when industries are in dire straits, KASSIA President R Raju said in a statement.
The same confusion exists with regard to moratorium on the repayment of installments and interest as well as other compliances. While some banks may be transparent and forthcoming, a number of others are unsure and place hurdles in the way of the MSME customers in accessing these benefits, he said.
KASSIA has received a number of complaints and representations from its members about the difficulties in accessing the schemes.
We, therefore, would like to seriously urge the government to immediately ensure that uniform guidelines are issued and followed by all the Banks and other institutions as otherwise a large number of MSMEs, accounting for approximately 30-35 per cent of the units, may have no option but to shut down for want of succour, Raju added.