As a SME businessman, I appreciate the efforts the government has taken to unburden our community financially by introducing moratoriums on term loans during the lockdown period. However, the interest rates on business loans & credit cards during the moratorium levied by various banks are criminal.

Like me, the income of many small business owners has come to a standstill since mid-March with no respite in sight especially for certain sectors like entertainment, F&B, tourism etc. Many of us use the credit line facility offered by credit cards to fund vacations, school fees, hospital bills, office/shop expenses or simply to invest in our businesses, keeping in mind that the outstanding would be cleared by the next due date. However, due to the unfortunate lockdowns, the ability to pay back the dues have been severely impacted as the incomes have practically dropped to zero in the past 3 months and the future doesn’t look too bright either.

The interest rate on credit card dues can range between 30-50% per annum which is acceptable under normal circumstances and most of us do not utilize it either. But levying such humongous interests during uncertain times like these is downright inhuman. Its like the banks are bent upon making money off our misery. Many of us factor in the credit card dues in our monthly turnovers and may not have enough liquidity to clear off the dues with nil business. Moreover, people are going to rely on their credit cards to get them through this difficult time and it would behove these companies to be good corporate citizens and reduce the interest rates significantly.

During unprecedented times like these when everyone is struggling especially the middle class and the SME sector, I believe the RBI & the Finance Ministry should step in and restrict the banks from charging such high interest rates.  

Please sign and share this petition extensively as this issue affects many of us.