Banks should be encouraged to finance small and medium enterprises. Despite popular perceptions about these loans going bad. Reality is different, these loans are backed by good collaterals. While Bank management bend ways to restructure Large Advances to save their Balance Sheets, they are not much accommodative to small borrowers. This is high time Reserve Bank should frame a policy to allow loans to businesses against property and Gold upto Rs. 50 crores with less stringent NPA norms. This can help Bankers with lending options other than Large Borrowers.
Banks should be encouraged to finance small and medium enterprises. Despite popular perceptions about these loans going bad. Reality is different, these loans are backed by good collaterals. While Bank management bend ways to restructure Large Advances to save their Balance Sheets, they are not much accommodative to small borrowers. This is high time Reserve Bank should frame a policy to allow loans to businesses against property and Gold upto Rs. 50 crores with less stringent NPA norms. This can help Bankers with lending options other than Large Borrowers.
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