New Delhi: Finance Minister Nirmala Sitharaman today announced that the union government will provide Rs 3 lakh crore collateral-free automatic loans for MSME sector.
Addressing press she spelled out details of economic package. She said that the economic package will be released in tranches and today’s tranche will have 14 different measures. Six of these are for MSMEs, two are for EPFO, two for NBFCs and Mutual Funds and one each for discoms, contractors, real estate and tax measures.
Under the MSME measure, borrowers with up to ₹25 crore outstanding and ₹100 crore turnover would be eligible for the special collateral free loan.
The loan will have a 4 year tenor with moratorium of 12 months on principal repayment and the interest will be capped.
There will be a 100 per cent credit guarantee cover to banks and NBFCs on principal and interest. The initiative can be availed till October 31, 2020, and no guarantee fee and fresh collateral would be required.
She also announced Rs 30,000 crore special liquidity scheme for NBFCs/HFCs/MFIs. Under this, the investment will be made in both primary and secondary market transactions in investment grade debt paper of NBFCs/HFCs/MFIs. It will supplement RBI/govt measures to augment liquidity
Securities will be fully guaranteed by govt of India. This will provide liquidity support.
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