Business Loan News

Stalin seeks moratorium on loan repayment for MSMEs

M.K Stalin, the Chief Minister of Tamil Nadu, pleaded to his counterparts via letters, asking them to join his efforts in asking the Central Government and Prime Minister Shri Narendra Modi to provide moratorium on loan repayment for the MSME sector that has been badly hit due to the Covid-19 pandemic.

The lockdown meant to suppress the spread of the pandemic has affected small businesses severely. He has written letters to the Chief Ministers of Jharkhand, Andhra Pradesh, Bihar, Delhi, Chhattisgarh, Kerala, Maharashtra, Punjab, Odisha, Rajasthan, Telangana, and West Bengal asking them in turn to write letters to the Minster of Finance and Chairman of RBI regarding the moratorium as he feels that a united front might ease things and increase the chances of success for the appeal.

Stalin pointed out the fact that when the central government announced lockdown last year, there was a decision to provide moratorium on loan repayment for the MSME’s, but this year it hasn’t been followed although the state governments had to impose lockdown individually to curb the death toll due to the spread of the pandemic. He seeks a moratorium on loan repayment of upto INR 5 Crores for atleast the first two quarters of 2021 to ensure that the MSME sector doesn’t collapse.

Updated Date: 14-06-2021