FM Nirmala Sitharaman Announces Automatic Unsecured Loans for MSMEs for 4 Years | Economic news
New Delhi: Finance Minister Nirmala Sitharaman on Wednesday (May 13th) announced several categories of automatic unsecured loans for businesses, including MSMEs, while developing the Atmanirbhar Bharat Yojana announced Tuesday by Prime Minister Narendra Modi.
The FM says the economic package will be released in installments and today’s installment will feature 14 different measures. Of these, 6 are intended for MSMEs, 2 are intended for EPFs, 2 for NBFCs and MFIs, 1 for discoms, 1 for entrepreneurs, 1 for the real estate sector and 3 fiscal measures.
Definition of MSMEs changed, investment limit, turnover size revised: FM Sitharaman
Speaking about unsecured loans to MSMEs, she said, “This loan is for 4 years and is 100% guaranteed. It will last until October 21, 2020 and will benefit 45 lakh units, allowing them to resume their activities. and safeguarding jobs. “
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She said that Indian MSMEs and other companies have often faced unfair competition from foreign companies. Therefore, global tenders will not be allowed in public tenders up to Rs 200 crore, adding that “the necessary changes to the general financial rules will be made. a step towards the independence of India and the support of Make in India. It will also help MSMEs to develop their activities. ”
According to FM, stressed MSMEs need equity support. The government will facilitate the provision of Rs 20,000 crore as subordinated debt, which will benefit MSMEs 2 lakh. Functional, NPA or stressed MSMEs will be eligible. The government will provide assistance of Rs 4000 cr to the CGTMSE.
The FM said that “The Prime Minister presented a comprehensive vision, and this vision was presented after extensive consultations with several sections of society,” she said, adding “Basically it is about stimulating growth and build a very self-sufficient India and that is why this whole initiative is called Atmanirbhar Bharat Abhiyan.
“India Atmanirbhar (autonomous) does not mean that India has to be an isolationist country,” she added.
On Tuesday, Prime Minister Modi announced the “Atmanirbhar Bharat Abhiyan” – an economic relief plan worth Rs 20 crore for an “autonomous” India, adding that the plan, estimated at around 10% of GDP, is intended to help fight the COVID-19 pandemic.