Small Business Loans: Biz2Credit.in » Interest Rates

FIEO Emphasizes MSME Interest Rate To Be Capped At 7 Percent

Biz2Credit Advisor — Mon, 06 Feb 2012 06:04:48 +0000

The Finance Ministry has been requested by apex body of exporters to cap interest rates on loans for small and medium sized businesses. Exporters are demanding the interest rate to be capped at 7 percent and including export credit under priority sector lending in forthcoming budget.

The successive policy rate hikes made interest rates uncompetitive internationally and it has hit capital formation and investment. This was revealed in a statement published by ‘Federation of Indian Exporters Organization’ (FIEO). The body made a clear suggestion in its press release that interest rate for micro, small and medium enterprises (MSMEs) should be capped at 7 percent and for other businesses it should be capped at 9 percent.

For Small Business export sectors, FIEO also asked for interest subvention until March 2013. Rafeeque Ahmed, President FIEO, discussed the points during a meeting with Finance Ministry Officials in New Delhi. Ahmed also emphasized on small business tax breaks for both direct and indirect taxation.

This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to info@biz2credit.in

MASSIA proposes debt restructuring for business owners

Biz2Credit Advisor — Fri, 30 Jan 2009 06:53:40 +0000

The Marathwada Association of Small Scale Industries and Agriculture (MASSIA) has approached banks to consider a moratorium on repayment and debt restructuring, higher working capital limits, additional term loans and bills discounting or factoring.

The Association has engaged the government for assistance in reviewing non-performing MSMEs assets to overcome temporary lows and help keep the units alive.

HDFC slashes interest rates on commercial loans

Biz2Credit Advisor — Fri, 23 Jan 2009 05:32:08 +0000

HDFC Bank has decided to slash interest rates on personal and commercial loans up to 150 basis points, from Jan 19, 2009. In addition, the bank will also cut interest rates on corporate loans and wholesale credit, a positive step for small and medium businesses.

The move is a pre-emptive measure to cushion slackening auto, manufacturing and small business sales in general.

Andhra Bank reduces rates and increases working capital loans

Biz2Credit Advisor — Tue, 20 Jan 2009 05:23:22 +0000

Andhra Bank has reduced interest rates to micro businesses by 100 basis points and for small businesses by 50 basis points. The policy change will immediately apply to both existing and new loans.

The bank has also announced that they will grant need-based ad hoc working capital demand loans up to 20 percent of the existing fund-based limits for units with overall fund-based credit facility up to Rs 10 crore.

Interest rate relief for small business owners!

Biz2Credit Advisor — Thu, 15 Jan 2009 07:40:46 +0000

All 28 public sector banks have reduced interest rates. While Indian small and medium enterprises will receive a reduction of 50 basis points, micro enterprises will receive a rate reduction totalling 100 basis points in interest.