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The small and medium enterprises in this region have expressed their disappointment on the RBI's stance in keeping the rates unchanged.
Seeking immediate intervention to bail out this ailing sector by effecting a cut in borrowing rate, the Coimbatore District Small Industries Association President Ponnusamy said "there is no justification. While bigger corporates are able to bargain and get a fair rate, we pay around 13 per cent. Funds are costly and many of the units are not able to get the support on time, forcing them to look at private money lenders for instant support."
"Postponement in taking such a measure means that we will have to wait for some more time for the support," he said, voicing disappointment.
Asked what in his perception would be a fair rate, he said 'We expect the rate to be on par with agriculture lending rate. SMEs do not have an assured market, but offer huge employment and growth potential.''
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