Finance Minister Nirmala Sitharaman while addressing the media over the mega Rs 20 lakh crore economic package under the Atmanirbhar Bharat mission informed that starting today (13 May) she will be revealing details of the vision in various tranches.
As part of today’s tranche of announcement, Sitharaman said that Rs 3 lakh crore will be sanctioned to issue collateral free automatic loans for MSMEs.
Additionally existing borrowers with outstanding debt up to 25 crore and turnover up to Rs 100 crore are also eligible for this scheme. This scheme will be valid till 31 October, expected to benefit 45 lakh MSMEs.
The total tenure of this loan will be 4 years and no principle repayment needs to be done in the first year. The interest rate will be capped and the government is expected to provide 100 per cent credit guarantees to banks and NBFCs who will issue the loans.
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