PHDCCI seeks 180-day NPA window for MSMEs, higher MUDRA loan limits
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The PHD Chamber of Commerce and Industry proposed extending the NPA classification window for MSMEs from 90 to 180 days.
- ✓As part of its pre-Budget recommendations for 2027-28, the body also sought higher MUDRA loan limits.
- ✓These changes aim to help small businesses manage cash-flow constraints and rising project costs.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Standard
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
The PHD Chamber of Commerce and Industry (PHDCCI) has proposed extending the overdue period for classifying loans to micro, small and medium enterprises (MSMEs) as non-performing assets (NPAs) from 90 days to 180 days, alongside higher loan limits under the Pradhan Mantri MUDRA Yojana (PMMY), as part of its pre-Budget recommendations for 2027-28.
The industry body has argued that the longer classification window would provide relief to small businesses facing extended working capital cycles and delays in receiving payments, while helping them maintain access to institutional credit.
Under the existing framework, a loan is generally classified as an NPA when principal or interest remains overdue for more than 90 days. PHDCCI wants this period extended to 180 days to account for the cash-flow constraints faced by smaller enterprises.
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