Q.

1 Name of the bank:

Q.2 How many SMEs are registered in the bank-linkage program under your bank?

ANS:

Q.3 How many SMEs are financed by your bank?

ANS:

Q.4 How do you advanced loans to SME?

1. Directly
2. Through the NGO sponsoring
3. Others(specify)

Q.5 Do you fix up maximum limit of loan for different purposes of SME?

Yes ( ) No ( )

Q.6 Which types of SME you financed most?

1. Women
2. Men
3. Composite
4. Disabled

Q.7 Before sanctioning finance do you assesses repayment capacity of SME?

Yes ( ) No ( )

Q.8 Do you charge different rate of interest for different type of loans to SME?

Yes ( ) No ( )

Q.9 How do you determine the amount of loan to each SME?

1. Amount of deposits
2. Need of loan amount
3. Guidelines of bank head office or RBI or NABARD

Q.10 What nominal interest rate you charge for loan to SME?

1. 4 % to 5%
2. 5.5% to 6%
3. 6% to 6.5%
4. 7% to 8%
Q.11 What are the purpose for which you give loans to SMEs?

1. Farm operations
2. Small trade and small tiny industry
3. Dairy operations
4. Others

Q.12 Does you bank fix up target of loan finance to SME every year?

Yes ( ) No ( )

Q.13 What is the total amount given to SMEs in the last 5 years?

Particulars 2012-13 2013-14 2014-15 2015-16 2016-17

5 lakh-10 lakh
10 lakh-15 lakh
More than 15
lakh

Q.14 Do you make periodical inspection of SMEs and assess utilization of loans?

Yes ( ) No ( )

Q.15 What steps do you take for timely recovery of loans from SMEs?

1. Sending reminders
2. Telephone reminders
3. Issue notice

Q.16 What is the time limit at which the SMEs repays their loans?

1. Prompt
2. Delayed to 3 months
3. Delayed to 6 months
4. More than a year

Q.17 How much of your NPAs are derived from finance to SMEs?

ANS:

SMEs in the realty space are facing teething troubles

August 30, 2017:

Mohan Kumar, a latch-maker and small-time vendor in the real estate sector space in Delhi-
NCR region, has a peculiar problem. If Kumar sends a sample to a real estate player, it is per
senot taxable under the Goods and Services Tax (GST) regime. However, the freight and
packaging component attracts GST.

Ever since GST took effect on July 1, Kumar and others like him have been trying to figure out
how to become GST-compliant.

A perplexed Kumar notes that SME vendors are yet to be trained and advised to claim the
transition provisions of GST under section 140 and claim input tax credit under Form GST
TRAN-1. Compliance costs are high in the GST era, he says.

Nearly two months after the GST framework was unveiled, the real estate sector is still trying
to come to grips with the all-encompassing taxation regime.

While most real estate players say they are working with their vendors and SME players to get
them to become GST-complaint, they still face teething troubles.

For starter, all stakeholders have to upload their GST payment details; failure to comply may
mean they don’t get any input tax credit.

Industry players to whom Business Line spoke said SME vendors were getting bogged by the
mechanics of uploading tax details.

Deep Kantawala, Head - ICS Real Estate Partners, says, “The business fraternity will have to
cope with increased compliance and consequent cost under GST. There is a lack of full
awareness and preparedness on the part of the business community, particularly SMEs.”

Amit Goenka, MD & CEO, Nisus Finance says, “GST has brought about a single taxation
system. However, its benefits will take time to percolate to the consumer. Larger firms have
created systems to tackle regulatory changes. But there are adaptation challenges among SMEs.
While output is being charged at GST rates as applicable, computing input credit, filing GST
returns, getting previous service tax and excise offset/credit, among others, is a challenge.
There will be inflationary pressure, inefficiency in cash management and allied costs, which
will impose margin and liquidity pressure.” Real estate players are now also insisting that
vendors and suppliers furnish invoices. Mahindra Lifespaces, for instance, says it has a
framework in place which enables their vendors to comply, with support from designated
professional agencies.

Sunil Sharma, VP-Marketing and CRM, Mahindra Lifespaces, points, “The automation of the
credit mechanism is expected to enhance efficiencies for all stakeholders. We believe we are
among the first few developers to have passed on this incremental benefit of Input Tax Credit
to our customers.”

The benefit, he says, “has been passed on to all existing customers of under-construction
projects, who completed purchase in the pre-GST era, as well as to new customers in the wake
of the rollout of GST.”