Cooperative banks need to change policies for MSME lending, says Maharashtra State Cooperative Bank chair

The Chairman of the Maharashtra State Cooperative Bank has called for a significant change in the lending policies of cooperative banks to better support the Micro, Small, and Medium Enterprises (MSME) sector. He emphasized that the current lending norms are often too rigid and not conducive to the needs of small businesses. The chairman urged cooperative banks to adopt a more flexible and proactive approach, including faster loan processing, simplified documentation, and the development of customized credit products for MSMEs. He pointed out that since cooperative banks have a deep grassroots-level presence, they are uniquely positioned to understand and finance local small-scale industries. A change in policy would not only boost the MSME sector, which is a major contributor to employment and economic growth, but also strengthen the loan portfolios of the cooperative banks themselves.