Rs 3 lakh crore collateral-free loans to MSME: Nirmala Sitharaman

Rs 3 lakh crore collateral-free loans to MSME: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Wednesday said that the medium and small scale enterprises (MSMEs) will be eligible for collateral-free automatic loans as part of the Rs 20 lakh crore Covid-19 special economic pacakge announced by Prime Minister Narendra Modi on Tuesday evening.

Sitharaman said the government has earmarked Rs 3 lakh crore for these MSMEs. For MSMEs with outstanding loan is 25 crore or with 100 crore turnover will get these loans. These loans will be given under 100 per cent credit guarantee scheme with a moratorium of 12 months on payback.

She announced 15 different measures on Wednesday, six of which concerns MSMEs and two relates to the EPFO.

A total of Rs 52,666 crore were transferred to the bank accounts of beneficiaries in the Pradhan Mantri Gareeb Kalyan Yojana, announced in the wake of coronavirus lockdown announced in March, Sitharaman said. A refund of Rs 18,000 crore is given to the tax payers to ensure liquidity in the hands of people, she said.

Referring to the economic package, she said, "Essentially, this is to spur growth and to build a very self-reliant India. And, that’s where it is called the Aatma Nirbhar Bharat Abhiyan (Self-reliant India Mission)."

Sitharaman underlined the five pillars economy, infrastructure, technology-driven systems, demography and demand -- that PM Modi talked about in his address to the nation.

"The focus is on the factors of production: Land, Labour, Liquidity and Law. It addresses issues of ease of doing business. The intention is to build brands and take local brands and build them as global brand and link them with global supply chain," she said.