A high level meeting in the Planning Commission today on the flow of credit to the small scale sector decided to work on various proposals that would remove the current hurdles in such units seeking institutional finance. Among the proposals under consideration are those on hiking the loan limit at prime lending rates and on collateral security along with legislations for delayed payments and factoring services.
Talking to presspersons after the meeting, the Deputy Chairman of the Planning Commission, K. C. Pant, said the Reserve Bank of India (RBI) had been asked to look into the issues including reduction in lending rates to SMEs at prime lending rate and to come up with concrete suggestions by January 2003.
