Small and medium enterprises (SMEs) are the backbone of the Indian economy and commercial banks must re-orient their lending policies according to the needs of each type and unit in terms of repayment, to enable them gain sustainability in the long run, according to Mr S. Kannan, Commissioner of Customs, Chennai.

He was delivering the key-note address at the 15th regional conclave on ‘Empowering Growth of SMEs,' jointly organised by the Madras and Madurai Management Associations, in partnership with Konrad Adneauer Stitung, Germany, here on Saturday.

Uniform repayment mode

He said uniform repayment mode would not suit them as the business nature of each unit differs . Banks should factor in aspects such as seasonality, demand, turnover while awarding loans and fixing repayment periods. The aim should be enable them sustain their business, for only they can provide solutions to problems like employment . Malls and multinational corporations would not help in the matter, he observed.

He further said that entrepreneurs in the sector were more innovative but must be recognised citing the concept of share-autos, which not only provided employment but help run a parallel transport system. He stressed on the need to look for local technologies and products that prove more often viable and useful.

Mr V.V. Rajan Chellappa, Mayor, Madurai Corporation, who inaugurated the conclave, sought the help of entrepreneurs in turning the temple city into a vibrant industrial city and assured all help in this regard .

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