Mumbai: Union Finance Minister Nirmala Sitharaman on Monday said banks need to focus more on being customer-friendly so that the process of availing credit becomes more hassle-free for borrowers.
However, the minister made it clear that banks do not have to be lenient on credit underwriting standards by taking any adverse risks on a proposal.
At a meeting between industry representatives and the finance minister, a startup founder in the baking business suggested for credit to be available hassle-free, to which largest lender SBI’s Chairman Dinesh Kumar Khara said a startup’s worries are more on the equity side and assured full support in lending if sufficient equity is on the table.
Later, he also made a mention of the government’s Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Stressing that the person asking the question is a woman operating an innovative enterprise, Sitharaman had a few suggestions for the banking community and also spoke out against their attitude.
“Initially, Mr Khara gave a very bland answer. And then after being prompted somewhat, he went into talking about a scheme which has a lot of government support, the CGTMSE,” she said.