Delay in Loan Disbursement Raises Concerns Among Entrepreneurs in Tripura

By Our Correspondent

Agartala, April 5, 2026

The persistent delay in loan disbursement to beneficiaries’ accounts has emerged as a serious concern for entrepreneurs in Tripura, particularly those operating in the Micro, Small and Medium Enterprises (MSME) sector. Despite receiving training and formal sanction letters, many aspiring entrepreneurs are reportedly struggling to access timely financial support, hampering their business plans and raising questions about the efficiency of banking services in the state.

A significant number of beneficiaries had undergone Entrepreneurship Development Programmes (EDPs) conducted by the Society for Entrepreneurship Development (SoFED) under the Industries Department of the Government of Tripura. These programmes were designed to equip individuals with the necessary skills and knowledge to establish and expand enterprises. However, the benefits of such training appear to be undermined by procedural delays in loan disbursement by banks, even after approvals have been granted.

Entrepreneurs allege that the lag in credit flow is preventing them from procuring machinery and other essential inputs required for operationalizing or expanding their units. This issue is particularly critical for those engaged in value addition activities linked to agriculture, where timing plays a crucial role. Delays not only disrupt production cycles but also lead to financial stress, sometimes pushing accounts towards non-performing asset (NPA) status.

The issue has drawn attention to the functioning of the State Level Bankers Committee (SLBC), which in Tripura is convened by Punjab National Bank. Stakeholders suggest that the matter requires urgent discussion within the SLBC framework to ensure accountability and adherence to timelines. Clear operational guidelines from the Reserve Bank of India could play a pivotal role in streamlining the process and preventing such delays.

Kiran Bhowmik, PhD Scholar in the Department of Economics at Tripura University and a Research Associate under the 16th Finance Commission study, emphasized that timely implementation of government-sponsored schemes is essential to achieving the state’s vision of “Ek Tripura Shreshtha Tripura.” He noted that delays in financial support risk diluting the impact of policy initiatives aimed at fostering entrepreneurship and self-reliance.

Meanwhile, the National Bank for Agriculture and Rural Development (NABARD) has been actively monitoring Regional Rural Banks, and experts believe that strengthened oversight mechanisms could help address such bottlenecks. Ensuring prompt credit delivery will be crucial for expanding the reach of schemes and supporting grassroots entrepreneurs.

While Tripura has made notable strides in promoting entrepreneurship, bridging the gap between policy intent and implementation remains key. Addressing these systemic delays will not only boost investor confidence but also contribute meaningfully to the broader national vision of a “Vikshit Bharat.”

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