We all know that India is agricultural land, where farmers are the backbone. Next to farmers, the essential role transfers to the shoulders of small businesses. No doubt, they are already struggling with the outcomes of COVID. The loan moratorium extension was a relief, but not a permanent solution to reduce the burden. Everyone is struggling to found stratagems and means to repay the mounting debt. About a third of India’s $1.8 trillion outstanding loans is being differed under the program, after the freezing period of six months. Still, the borrowers are helpless to clear their loan repayments.
Moksh Popli, being a business consultant, says that at this hour of emergency, small businesses approach him for seeking advice on how to get back on track or combat these situations? His firm is trying every possible bit to help the fellow businessmen in managing the adversities. We don’t need any proofs as every second business is collapsing in demand to figure out how to pay back their EMIs or handle the cessation. There is another side of the coin, which demands that this extension should not be given anymore as people are taking advantage, even when they don’t need it.
Moksh Popli says that the recent addition in this column to bring relief to the borrowers is the restructuring of loans. It is not automated process borrowers have to take a step, discuss the outcomes, and prospective ways to deal with this situation without any delays. Few economists assume that many organizations are unable to manage to wait and adrift because of the moratorium extension, and this will lead them to bankruptcy.
Seeking hope for revival, as the economy recorded a contraction of 23.9% in the last quarter, it took severe blows after millions of Indians lost their jobs during the lockdown is not easy. Meanwhile, the surge in infected cases has led many experts to depreciate the forecasts. The banks are against the loan moratorium extension any more. They consider it like a bruise on the finances. Perhaps, we all are blank about the future for the simple reason that business is yet to get a drive. To date, everyone is gazing in a direction where potential collapse is visible if no accurate respite from the government is acknowledged.
Enduring these tough times, we can barely look into the bright side, says Moksh Popli. But being an admirer of Modi and his policies, he seeks some influential revival strategies to help his countrymen. These situations are critical for everyone, whether you are a small businessman or a giant brand? Survival and binding are difficult but not inconceivable.