Government announces Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs

New Delhi: In a major initiative Government announces Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs. This is announced by the Finance Minister Nirmala Sitharaman. Finance Minister Nirmala Sitharaman announces collateral free loans to MSMEs which will benefit 45 lakh units. These have 4 year tenor, valid up to October 31st, 2020: Finance Minister Nirmala Sitharaman.

“These loans will have a 4-year tenure, 12-month moratorium to be given. These will be 100% credit guaranteed and available till 31st October, 2020”: Finance Minister

The Finance Minister will outline 15 measures. the first 6 relates to Mlmicro, small and medium enterprises (MSMEs)

1. Short time loans with 12 month moratoriums without collaterals. 46 lakh units can benefit from this.

Government to provide stressed MSMEs with equity support; Government will facilitate the provision of Rs. 20,000 Crores as subordinate debt informed Finance Minister Nirmala Sitharaman.

Government will provide Rs 20,000 crore liquidity. For this scheme, NPAs or stressed MSMEs, all will be eligible: Union Finance Minister

Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds; to be operated through a Mother Fund and few daughter funds; this will help to expand MSME size as well as capacity informed Finance Minister Nirmala Sitharaman.

Definition of MSMEs gets a revision, Investment limit to be revised upwards, additional criteria of turnover also being introduced informed Finance Minister Nirmala Sitharaman.

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