06 June,2026 07:25 PM IST | Mumbai | PTI
TSSIA says affordable credit remains key challenge for MSMEs. PIC/X
The Thane Small Scale Industries Association (TSSIA) on Saturday welcomed the Reserve Bank of India (RBI)'s cautious monetary policy, but said the micro, small and medium enterprises (MSME) sector urgently requires simplified, affordable and swift credit supply.
The RBI on Friday kept its benchmark repo rate unchanged at 5.25 per cent, and announced a raft of measures to attract foreign capital and support the rupee amid growing risks to growth and inflation from the prolonged West Asia conflict, elevated energy prices and global supply-chain disruptions.
In an official release, TSSIA President Sandeep Parikh said keeping interest rates unchanged provides relief amid global geopolitical tensions, rising fuel prices and economic uncertainty.
"The stable repo rate prevents an additional interest burden, making working capital and term loan planning easier. Controlling inflation will also help reduce pressure on raw material costs," Parikh said.
However, the industry body noted that a rate cut would have lowered borrowing costs for MSMEs still recovering from financial stress.
"It is critical for financial institutions to simplify the loan approval process, reduce collateral bottlenecks, and ensure timely funds reach MSMEs - the backbone of industrial development, exports, and employment," the official release said.
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