Finance minister Nirmala Sitharaman on Wednesday announced credit guaranteed loans to micro, small and medium enterprises (MSMEs), expected to help about 4.5 million units to get back to business.
Announcing the details of the ₹20 trillion fiscal stimulus package, Sitharaman said the collateral free, automatic loans will benefit MSMEs with up to ₹25 crore outstanding loans and ₹100 crore sales.
The size of the scheme is ₹3 trillion, she said, adding that loans will have a moratorium of 12 months. "The loans are 100% credit guaranteed as a cover to banks and non-banking finance companies on principal and interest. This will be available till 31 October. No fresh collateral required."
Sitharaman also said the next wave of reforms with self-reliance as the guiding principle will focus on land, labour, liquidity and laws.
Essentially, this is to spur growth and to build a self-reliant India. That is why this initiative is called ‘Atmanirbhar Bharat Abhiyan.’ The vision for a self-reliant India, the minister said, rests on the pillars of economy, infrastructure, technology-driven systems, demography and demand.
Prime Minister Narendra Modi on Tuesday announced the long-awaited stimulus package of ₹20 trillion for businesses and workers to soften the devastating blow from the lockdown that has pushed many companies to the brink of bankruptcy, with revenues and cash flows disappearing overnight.
The package, comprising around 10% of India’s grade domestic product (GDP), will focus on land, labour, liquidity and laws. It accounts for almost a full year of India’s gross tax revenue and includes the monetary easing announced by the Reserve Bank of India.
Source - LIVE MINT