Credit and Finance for MSMEs: MSMEs operating in more than 3,000 Tier-II towns “were covered in one day” under the scheme to help them “pay salaries, rent, and restocking expenses,” Finance Minister Nirmala Sitharaman’s office had said in a tweet.
Credit and Finance for MSMEs: Finance Minister Nirmala Sitharaman on Tuesday, in an update on the Rs 3 lakh crore collateral-free loan scheme for MSMEs, said that loans worth Rs 10,361.75 crore have been sanctioned by the public sector banks. The information was tweeted by the minister’s office. The sanctioned loan amount by banks was up 223 per cent from Rs 3,200 crore in a single day on Monday through the emergency credit line guarantee scheme. Out of the sanctioned amount, Rs 3,892.78 crore has been disbursed, the tweet added. However, the data on the number of MSMEs supported wasn’t disclosed.
Public sector banks have already sanctioned loans worth Rs 10,361.75 crore under the 100% Emergency Credit Line Guarantee Scheme. Out of this, Rs 3,892.78 crore has already been disbursed. #PSBs #MSME #AatmanirbharBharat #ECLGS @FinMinIndia @PIB_India @DFS_India
— NSitharamanOffice (@nsitharamanoffc) June 3, 2020
MSMEs operating in more than 3,000 Tier-II towns “were covered in one day” under the scheme to help them “pay salaries, rent, and restocking expenses,” Sitharaman’s office had said in another tweet on Monday. The minister had announced the Rs 3 lakh crore collateral-free loan scheme last month for businesses and MSMEs that have been impacted by Covid-19 and “need additional funding to meet operational liabilities built up, buy raw material and restart business,” Sitharaman had said while launching the package.
Eligible MSMEs must have up to Rs 25 crore outstanding and Rs 100 crore turnover for raising the emergency credit from banks and NBFCs up to 20 per cent of entire outstanding credit as on February 29, 2020. Credit given to businesses will have four-year tenor with a moratorium of 12 months on principal repayment. The government will offer complete credit guarantee on the principal and interest amounts. The scheme, which can be availed till October 31, 2020, will benefit 45 lakh MSMEs in terms of resuming business activities and safeguard jobs, according to the minister.
Prime Minister Narendra Modi on Tuesday had also reassured MSMEs of growth with new measures in place particularly the revision in the MSME definition. “This will enable MSMEs to grow without any worries and they will not have to follow other paths to maintain the status of MSMEs,” PMO India tweeted citing Modi in his address on the 125th anniversary of industry association CII.