JOIN USThe Bangalore Tourist Taxi Owners Association (BTTOA), in a memorandum submitted to the chairman, Bankers Association of India, has urged private financiers and multinational banks to consider a installment payment holiday to tourist and luxury taxi operators. B G
Lingaraju, vice-president of the BTTOA said the liberal financing system for purchase of cars to ply as luxury taxis in addition to the economic recession has hit service providers hard.
“The tourism industry that has till now thrived in multiplicity due to liberal finance schemes by banking institutions have now suffered losses. Corporates have cut down expenses extensively, due to which car rental requirement has declined by 50 percent,” said Lingaraju. BTTOA says as 2009 sees global recession at its peak, many tourist operators and luxury vehicle owners who have availed financial assistance for purchase of new vehicles are now finding it extremely difficult to make both ends meet.
“As a result of this, we seek sops and relief to borrowers in the form of granting holiday.
The RBI can ask private banks to help us by way of suspending loan installment recovery and collect only interest over pending installments for a minimum period of six months,” added Lingaraju.
The association has also called for instructions to recovery agents to go soft on borrowers who have defaulted in payment of one installment and stopping of harassment.