HYDERABAD: Finance minister Etela Rajender said that even if entrepreneurs fail to pay back the amount, it should not be viewed as a loss by banks.
“It is like a drop from an ocean which is lost,” he remarked while addressing a bankers conclave on financial opportunities for MSME sector, which began here on Friday. Setting the way forward for entrepreneurs of MSME (Micro, Small and Medium Enterprises) sector in the state, the conclave was flagged by Federation of TS and AP Chambers of Commerce in India.
The two-day conclave will see entrepreneurs collaborating with banks to have effective credit solutions.
The entrepreneurs have to go through a long chain of a process to procure loans from banks and that has caused the entrepreneurs to take a back seat.
“Lack of collateral securities refrain banks from giving loans that are affecting the growth,” said Prem Chand Kankaria, a member of FTAPCCI. According to him, increasing ticket costs and banks, considering the sector to be high risk, has reduced interest among entrepreneurs to come into this sector.