FM Nirmala Sitharaman announces Rs 3 lakh cr collateral free loan for select MSMEs
A day after PM Narendra Modi laid out his vision to get the Indian economy back on track after Coronavirus enforced lockdown, Finance Minister Nirmala Sitharaman announced a number of measures for small and medium enterprises today evening, providing some relief during the ongoing crisis.
A day after PM Narendra Modi laid out his vision to get the Indian economy back on track after Coronavirus enforced lockdown, Finance Minister Nirmala Sitharaman announced a number of measures for small and medium enterprises today evening, providing some relief during the ongoing crisis. The finance minister during her press conference announced that MSMEs will be provided Rs 3 lakh crore collateral free loans. They need to have an outstanding loan of Rs 25 crore or have Rs 100 crore turnover.
She said that these loans will be provided for a tenure of four years with a moratorium of 12 months. She said that 100% credit guarantee will be given to banks and NBFCs on principal and interest.
"This loan is for 4 year tenure and is 100 per cent guaranteed. This will last till October 21, 2020. It will benefit 45 lakh units, allowing them to resume activity and safeguarding jobs," Sitharaman said.
WATCH Zee Business TV LIVE Streaming Online
Here are the announcements made for MSMEs
- Borrowers with up to Rs 25 cr outstanding and Rs 100 cr turnover are eligible
- Loans to have 4 year tenor with moratorium of 12 months on princial repayment
- Interest to be capped
- 100% credit guarantee cover to banks and NBFCs on principal and interest
- Scheme can be availed till 31 October 2020
- No guarantee fee, no fresh collateral
- 45 lakh units can resume business activity and safeguard jobs
In total, the finance minister announced fifteen measures, out of which six were for micro, small and medium enterprises. "Today's tranche has 14 different measures. Six of these are for MSMEs, two are for EPF, two for NBFCs and MFIs, one to discoms, one to contractors, one real estate, three tax measures," Sitharaman said.
FM Sitharaman also announced Rs 50,000 cr equity infusion for MSMEs through Fund of Funds. She said that this will be operated through a Mother Fund and few daughter funds. This will help to expand MSME size as well as capacity.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
lok-sabha-elections-2024-final phase-7 voting-date-last day to vote general election timings-states-seats-key-candidates-constituencies-ls-polls-general-election-schedule-time-table-results-date
From Axis to IDFC First - These bank stocks can give bumper returns in 3-4 weeks – Check target price and stop loss
Rules Changing from June 1: Aadhaar card update, driving license, LPG price and others - Check Full List
Central Railways' 63-hour mega block to hit Mumbai local train services, check dates and other details
SBI Senior Citizen FD Interest Rates 2024: What Rs 2 lakh, Rs 4 lakh, and 6 lakh, and Rs 8 lakh investments will give you in 1-, 3-, and 5-year FDs
Gold and Silver rate today (May 30, 2024): Precious metal futures trade in red; yellow metal near Rs 72,000, white metal falls by nearly Rs 1,500
05:00 PM IST