India’s small businesses get the costliest loans next only to unsecured personal loans, notwithstanding their assets and employment creation for the economy.

The weighted average lending rate for micro, small and medium enterprises (MSMEs) was 11.24% in February, the second highest among different segments, according to the Reserve Bank of India (RBI).

The benefit of deep policy rate cuts have clearly not reached small firms, owing to the credit spread banks add in lieu of the risk perception of their businesses.

Policymakers need to fix the cost of credit, else small firms would remain under pain even after normalcy returns once the lockdown is gradually lifted.

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Russia	Cases: 8 494 589 Deaths: 237 619 Recovered: 0

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