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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