Wednesday, 29 August 2012

TRADERS WELCOME GOVT DECISION TO EXPEDITE LOANS TO SMALL TRADERS

The directions of the Union Finance Ministry to Banks as reported in the media, for providing maximum loan to small traders is a welcome step. More than 5 crore traders are working in unorganised sector and about 22 crore people are dependent upon the retail trade for their livelihood. The directions of the Finance Ministry speaks about the changing attitude of the Government towards small traders. To carry effective implementation of the directions of the Union Finance Ministry, certain other incidental steps are also necessary otherwise the directions will remain on papers and the small traders will be deprived of the benefits of such directions-opined the Confederation of All India Traders (CAIT), the apex body of the trading community of the Country.

CAIT National President Shri B.C. Bhartia and Secretary General Mr. Praveen Khandelwal while commenting upon above directions stated that there is an urgent need of a deep study as to why the small traders are not able to avail loan facilities from the banks despite several guidelines issued by Government from time to time. Since the small traders across the Country are not so well educated and mostly remain unaware of the loan guidelines of the Government can not comply with much paper work required for securing loans from the banks. Further, the banks always stress the traders for Colateral security. The decision making process is so cumbersome and long that a trader can not make rounds of the banks by leaving his business.

The CAIT has suggested that loans given to small traders should be categorised under primary sector lending. A simplified loan application system to be cleared in a time bound manner on single window clearence basis will prove much worthy for small traders in securing loans from the banks. All such loans given to small traders must be treated under Credit Guarantee Scheme and therefore the condition of coletaral security should be waived by the banks. On the pattern of Kisan Credit Card, the small traders should also get Traders Credit Card and concessional rate of interest should be allowed on loans taken by the traders. It will not only strengthen the retail trade but the trading community will also be able to contribute more to the GDP-said the trade leaders.

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