Finance Minister Nirmala Sitharaman announced collateral-free loans worth Rs 3 lakh crore for MSMEs with turnover up to Rs 100 crore till October 31, 2020, as part of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi on Tuesday. A total of 45 lakh MSMEs stand to benefit fro this measure, Ms Sitharaman pointed out.
MSME collateral free loans to be 100 per cent credit-free and the moratorium will be for first 12 months, Finance Minister Nirmala Sitharaman added.
The definition of MSMEs is being changed; a company with investment of Rs 1 crore and turnover of Rs 5 crore is a micro enterprise as per the new definition; one with Rs 10 crore investment and turnover of Rs 50 crore is a small enterprise; one with Rs 20 crore investment and Rs 100 crore turnover a medium enterprise, Finance Minister Nirmala Sitharaman added.
Prime Minister Narendra Modi on Tuesday announced a Rs 20 lakh crore package, amounting to 10 per cent of the gross domestic product, to support an economy battered by a sweeping weeks-long lockdown to fight the novel coronavirus.