In the wake of drying credit line for the MSMEs, especially after the IL&FS crisis, the Micro Small and Medium Enterprise (MSME) have demanded ease in lending norms to the industry when the Finance Minister Arun Jaitley stand to present his budget 2019 in the parliament on coming February 1. They said that post-2008 corporate profits have gone down drastically and hence the profit of the MSMEs because MSMEs work as vendors to the corporates. They also said that one-time loan restructuring of the MSMEs up to Rs 25 crore is a welcome move but it would help those MSMEs whose projects are stuck and are still viable subject to market business and economic viability.

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Rajeev Chawla, Chairman, IamSMEofIndia told Zee Business online, "Post 2008 corporate profits have gone down drastically and hence the profit of the MSMEs because MSMEs work as vendors to the corporates.

Hence, there is a good number of MSMEs who are on the list of bank NPA though their projects are still viable from market and business perspective.

Once their business gets on track, they can further avail the bank loans for further expansion and need of their business."

And here rises the problem as lending norms are too heavy for the MSMEs. In the recent times, it has been the NBFCs who have come forward to lend line of credit to the MSMEs but after the IL&FS crisis, even this source of revenue generation has dried up for the micro-sized start-ups. So, ease in lending norms is the must to keep the MSMEs sustain the rising demands of the market.

Standing in sync with Rajeev Chawla of the IamSMEofIndia; Sampad Swain, CEO & Co-Founder at Instamojo told Zee Business online,  “In the recent past we have seen a lot of focus on the MSME segment by the current govt which is a progressive move already.

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The two major pain points for businesses in our country has always been lack of capital and the taxation norms.

With the upcoming budget, we expect to see a lot more focus on lowering the lending norms for MSMEs to help get better access to capital, along with raising the GST exemption threshold for the small and medium enterprise. These changes will bring about a lot of ease in doing business.”