New Loan Policies of Reserve Bank of India for Small Industries

New Loan Policies of Reserve Bank of India for Small Industries are given below:

1. The small scale industries acquiring a cap, al-base of Rs. 100 lakh are entitled to prescribed working capital limits on the basis of a minimum 20% annual output.

This shall be applicable to both new as well as old units.

2. Inflow of loan in the small industries sector shall be increased during the ninth plan. The banks shall make annual loan budget for the small industries sector.

3. In order to tackle the problems of the small industries, every bank shall have an effective grievance settlement machinery.

4. Banks shall earnestly adopt the Ekal Khiraki Yojna and implement it. The State Finance Corporation shall work in 23 districts out of the 85 districts where there is sufficient industry concentration, as agency to provide finance.

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The districts that come under the defini­tion of sufficient industry concentration are those where there are more than 2000 registered small scale industrial units.

These corporations shall meet the working capital requirements and time-bound loan requirements of the small industries under the Ekal Khirki Yojna.

For the remaining 62 districts and other parts of the country, the commercial banks shall make arrangements for meeting the capital requirements under the Ekal Khirki Yojna.

The commercial banks shall also open their outlets in Industry concen­trated districts.

5. The entire small industries sector having an investment upto Rs. 60 lakh in equipment and machinery has been included in the primary loaning.

At least 40% of loan in small industries sector shall be earmarked for cottage industries, KVIC units, handicrafts and very small industries or industries investing five lakhs of rupees.

6. It has been included in the definition of the sick units in the small industries that the problems must have been settled at the initial stage itself.

Sick but viable small industries are given opportunities with even more attractive packages, to revive.