BHOPAL: Banks facilities like reduction of interest rate and easy financing schemes and cash crisis has not allowed money lending to grow after demonetisation, which has been the major market in the state, particularly in Malwa and other parts of the state.
Experts say that when there is cash crisis in the market, who will lend money? After demonetization, market suffered a big jolt particularly the unorganized sector which was mainly dependent on cash transactions.
Banks came out a massive bonanza in the interest of customers. SBI reduced interest rates on deposits for selected tenors while retaining the rates for other maturities. ICICI Bank also reduced interest rate. Similarly, other banks too floated many schemes. Central Bank GM Ajay Vyas said, “Bank has relaxed interest rates and made finance easy. It will boost the economy. This has not allowed money lending market to grow after demonetization.”
Kalpatru Multiplier Private Limited Aditya Manya Jain said, “No doubt, the market has suffered a jolt after demonetization. Particularly, in real estate, labours are paid weekly so builders and contractors need cash. As such builders have slowed down the work for time being and have retrenched the labour strength.” Rajendra Kothari, former president, PHD Chamber of Commerce said, “When there is cash crisis, who will lend the money? So this business died in its gestation period. All are sailing in the same boat as far as cash is concerned, so no one is in the position to lend money.” Anupam Agrawal, Akhil Bharati Vyapar Mandal, General Secretary said, “Cash crisis has left no scope of money lending in the market. Those who run business in ‘white’ are surviving in the market others have slowed down their business waiting for favourable conditions. However, market rate for money lending is 20 per cent. But it is not feasible under the present circumstances of the market to lend money. “
