Udupi ZP CEO Urges Banks to Boost Lending for MSMEs
By ETF Desk
On Tuesday, the Chairman of Udupi District's Zilla Panchayat (ZP) publicly urged banks operating in the region to increase their lending to micro, small and medium enterprises (MSMEs). He made the plea during a meeting of the district council, emphasizing the urgency of financial support for the local economy.
MSMEs in Udupi have reported difficulties in securing timely credit, citing high collateral requirements and rigid repayment schedules. With most small businesses relying on short‑term cash flow to sustain operations, the lack of accessible credit has led to reduced growth prospects and, in some cases, stalled expansions. The ZP chairman highlighted the need for more flexible, rapid‑disbursal loan products that align with the cash‑flow realities of local entrepreneurs.
By stepping up lending, banks could help revive sectors such as tourism, agriculture, and artisanal trades that form the backbone of Udupi’s economy. The chairman said that prompt credit would not only prevent business closures but also generate employment and stimulate ancillary services across the district. Source: Google News – Udupi.