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| JK Bank holds workshop on CGTMSE | | |
EARLY TIMES REPORT
SRINAGAR, May 1: Urging entrepreneurs to leverage finances and evolve organizational behavior, Chairman & CE, J&K Bank Dr Haseeb A Drabu, has called for the need of framing a comprehensive enterprise policy. "We have to understand the fact that the essential element of our economy is not industry or corporate but ours is an enterprise economy. Thus, what we direly need is a comprehensive enterprise policy", Dr Drabu emphasized while addressing a mega workshop on "Credit Guarantee Fund Scheme for Micro and Small Enterprises", organized jointly by J&K Bank, Credit Guarantee Funsssd Trust For Micro & Small Enterprise (CGTMSE ) and Small Industries Development Bank of India (SIDBI), which was inaugurated by him here at SKICC today.
Laying emphasis on confidence based lending, Dr Drabu said that lack of confidence of financial institutions in the modus operandi of businessmen and their naïve attitude to their businesses in J&K was the main reason behind low flow of credit to the MSEs. Describing Credit Guarantee Scheme as a transition and opportunity for the banks to lend to the MSE sector under conditions of reduced risk, Drabu hoped that the scheme establishes a relationship of comfort between lender and borrower. However, he was quick to add that the scheme should not be considered as an end in itself. "Entrepreneurs must capitalize on it; use it for creating credit history for themselves rather than weakening their will". Dr Drabu further said that banks were finding it difficult to finance MSEs as the entrepreneurs in this sector were not following standard accounting procedures and often had less collateral security to offer. CVKD Prabu of CGTMSE in his address said that credit under the scheme is available on softer terms as compared to the standard loans as a major part of the risk is borne by the CGTMSE. Giving details, Prabu said that the scheme provides guarantee up to 85% of the credit subject to the limit of Rs100 lakhs. "The scheme provides 5% increase in guarantee amount for women entrepreneurs", Prabu revealed. Speaking on the occasion Kachoo Isfandyar Khan, Director Industries & Commerce thanked the J&K Bank leadership for giving a new direction to entrepreneur finance.
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