Chennai, May 6 (KNN) In a positive development for small businesses navigating financial transitions, State Bank of India has waived the previously demanded foreclosure charges for M/s. Aar Pee Jee Steel Industries.

The Gummidipoondi-based manufacturing unit had been facing a 2 per cent foreclosure fee while attempting to transfer its cash credit facility to ICICI Bank.

The resolution came through the intervention of the Federation of Indian Micro and Small & Medium Enterprises (FISME), according to Akshay Gupta, Partner, M/s. Aar Pee Jee Steel Industries.

“Thanks to FISME’s intervention, and the support of Mr. Neeraj Kedia and Mr. Archit Tripathi, SBI waived the entire 2% charge, which came as a great relief to me,” Gupta stated.

FISME has been taking cases of affected MSMEs with respective banks and RBI.  

This waiver represents a significant financial consideration for the small manufacturing enterprise, as the 2% charge would have been calculated on their sanctioned cash credit limit of Rs. 449 lakhs.

The company, which has maintained a 22-year relationship with State Bank of India’s Ambattur SME Branch, had described their account history as “clean and blemish-free.”

The successful resolution highlights the importance of industry associations in advocating for small business interests within the banking sector.

The manufacturing firm can now complete its transition to ICICI Bank, which had already taken over their bank guarantee facilities and Covid GECL loan under more favourable terms.

This case may serve as a precedent for other MSMEs seeking greater flexibility when transferring their banking relationships in pursuit of more competitive financial arrangements.

(KNN Bureau)