Coimbatore Railway Suppliers Face Loan Delays Over Online Property Registration

Small businesses supplying parts to the railways in Coimbatore are facing long delays in getting bank loans. The Railway Equipment Suppliers' Association says banks are taking too long to complete loan work because of a shift to online property deed registration.

The Problem

The Tamil Nadu government started a new system on September 15. Under this rule, banks must handle the Memorandum of Deposit of Title Deeds online. But many banks and the Tamil Nadu Industrial Investment Corporation have not updated their computer systems for this task. They say they cannot get the required login ID and face errors while trying to register online.

Business Impact

These delays leave many small factories struggling to get their loan money on time. This hurts their daily business and working capital. Association president S. Surulivel has asked Chief Minister C. Joseph Vijay and other leaders to order all banks to fix their software right away so small businesses can get funds smoothly.

Context

Small and medium manufacturing units rely heavily on quick bank loans to buy raw materials and pay workers while waiting for payments from large clients like the railways. When loan approvals get stuck due to technical software issues, it puts a heavy strain on the cash flow of these small local factories.