CAIT demands to make loan easy for small traders

Confederation of All India Traders (CAIT) has welcomed the directions of the Union Finance Ministry to Banks for providing maximum loan to small traders is a welcome step. More than 5 crore traders are working in unorganised sector and about 22 crore people are dependent upon the retail trade for their livelihood.

CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal while commenting upon above directions stated that there is an urgent need of a deep study as to why the small traders are not able to avail loan facilities from the banks despite several guidelines issued by Government from time to time.

Since the small traders across the country are not so well educated and mostly remain unaware of the loan guidelines of the government cannot comply with much paper work required for securing loans from the banks. Further, the banks always stress the traders for Collateral security. The decision making process is so cumbersome and long that a trader can not make rounds of the banks by leaving his business.

The CAIT has suggested that loans given to small traders should be categorised under primary sector lending. A simplified loan application system to be cleared in a time bound manner on single window clearance basis will prove much worthy for small traders in securing loans from the banks. All such loans given to small traders must be treated under Credit Guarantee Scheme and therefore the condition of collateral security should be waived by the banks.

On the pattern of Kisan Credit Card, the small traders should also get Traders Credit Card and confessional rate of interest should be allowed on loans taken by the traders. It will not only strengthen the retail trade but the trading community will also be able to contribute more to the GDP-said the trade leaders.