The website of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has in all earnest displayed on the main page that this is a Collateral Free Loan. Thanks to the brains behind this approach. The writer of this article has approached nationalized and private banks for a loan. Outcome is frustrating. Let us understand what this fund is meant for and benefits for common man.
- The loan upper limit is 1 crore rupees,
- It can be taken for new or existing business,
- No collateral for the loan.
In reality the attitude of the bank branch managers and in some case some seniors in the banks is very unprofessional. Either they have zero knowledge about this loan or they pretend to do so. Smart phones have become handy. On all the occasion the moment I spoke about this loan, the first reaction was “There is no such Loan”. And moment this was told I made it a point to show them the website of CGTMSE on my smart phone which normally takes three to five minutes to open because of 2G speed in 3G plan of Vodafone most of the time. That apart, these branch managers are a impatient lot. They want easy business like fat current account, housing loan, vehicle loan, etc they would be happy as risk factor is low. More so the pressure of keeping the NPA under check has made them anti public.
They read the content and then the common statement comes “Yaar government to bik jayegi”. Dude that is not your problem. You are supposed to ask for the project report. Clarify doubts and say Yes or No. If need be, call the customer at a later date for update.
Secondly, they keep asking for balance sheet for previous three years and then collateral. Why?
Now this experience has come after meeting with Branch Managers of State Bank of Patiala, Axis Bank and a sitting BJP MLA from Mumbai.
OK now that I have already touched upon BJP MLA. Modiji needs to be informed that Janta Ka Sewak is a laughable thing. People visiting their offices are no doubt made to sit in clean tidy place. But the way I have seen people behaving is as if they have done some crime and gone to a police station. 15 second audience of the same person before election while canvassing and requesting people to vote with Joined Hands is a joke everyone knows. Here you see people enter with joined hands and leave with joined hands. Their office staff and body guards add to the fear of the visitors.
Back to the point.
The Prime Minister has personally taken the onus of promoting Jan Dhan Yojna and Mudra Bank. Why can’t the PM promote CGTMSE as well?
Why can’t PM ask the financial wizard Mr. Arun Jaitley to pull up the banks CEO and MD’s?
And last but not the least why forget media darling Mr. Raghuram Rajan. What initiative did he take to support the SME’s? Well discussing about him is not good investment of time now.
Hope new RBI Governor would do a better job. I know there are random surprise checks done by a team of RBI staff and reported to the RBI Governor. These checks are for multiple reasons. One of them is to check the compliance with regard to Customer Service. Would be great if CGTMSE application are included in that as well.
We can’t expect PM to do everything but when his team behaves indifferently then its important that all possible resources are used to inform. Educate the masses so that everyone comes on a common platform and raise VOICE of CONCERN.
Having named all that I had bad experience with. One name does need mention. Shri Giriraj Singh (Minister of State in MSME ministry).
Sharing few screen shots.
Modiji I wish you had two dozen performers like Shri Suresh Prabhu, Shri Piyush Goyal, Shri Nitin Gadkari and Smt. Sushma Swaraj. Reality is there is scarcity of performers. Hopefully the second cabinet reshuffle will create better dividend.
How fast we see the action?
My only ardent request is please ask your ministers and bureaucrats to treat us like adults not kids.
And promote CGTMSE the way Jan Dhan Yojana is done.
What’s the Solution?
Almost all possible processes have gone digital. Why not make application to CGTMSE also online?
Let there be timelines for screening the application, approval and rejection. None in Banking would then say that they have not heard of CGTMSE or ask for Collateral.
We read, we research, we demand, we follow up, we highlight issues, we give solutions, we assist and last but not the least we vote. We will not settle for a lolly pop against something that is our right. We VOTE.