Consequent to their nationalization, commercial banks have adopted various promotional measures to sanction credit to the small industries sector. The reserve bank of India has issued instructions that no worthwhile proposals of the small units would be rejected on conditions of lack of adequate security. Another important directive of the RBI relates to the reduction of the period of scrutiny of loan applications.
The branch managers are empowered to take maximum number of credit decision at their level. The intention is that credits limits upto Rs. 25000=00 and those exceeding this amount upto Rs. 2 Lakhs may be normally disposed off within a period of 4 weeks and 8-9 weeks respectively from the date of receipt of the application.
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