Industry cheers boost | india | Hindustan Times
Today in New Delhi, India
Jul 27, 2017-Thursday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Industry cheers boost

Credit-starved small and medium enterprises can look forward to cheaper funds after public sector banks on Monday announced a 1 percentage point cut in existing lending rates for such companies.

india Updated: Dec 15, 2008 21:03 IST
HT Correspondent

Credit-starved small and medium enterprises can look forward to cheaper funds after public sector banks on Monday announced a 1 percentage point cut in existing lending rates for such companies. “The micro, medium and small enterprises (MSME) sector has been one of the worst hit as a result of the credit crisis and this would help ease the cost of credit burden on these companies,” Chandrajit Banerjee, director-general, Confederation of Indian Industry (CII), said.

The government has recently announced a guarantee cover of 50 per cent for loans of between Rs 50 lakh to Rs 1 crore for such firms. Besides, public sector companies have been requested to ensure prompt payment of bills of MSMEs.