Dalit-run firms starved of funds as banks fight shy of lending to medium sector

.....But officials at medium-sized units allege that banks have been opting to invest in the RIDF rather than lend to medium-sized units fearing bad loans from such accounts, thus affecting the funding prospects of these firms. It also ensures that the principal amount is safe, said a bank official. "Banks are hesitant to fund several medium-sized units despite the fact that these loans will qualify to be PSL. They would rather invest in the RIDF," said Milind Kamble, president of Pune-based Dalit Indian Chamber of Commerce, an industry body for small and medium-sized firms run by Dalit entrepreneurs. The chamber, set up in 2003, has about 3,000 member firms with turnover ranging from Rs 10 lakh to Rs 2,000 crore. Besides the PSL, banks are also required to make available..........

Read..........