A day after Prime Minister Narendra Modi announced monetarymeasures worth Rs. 20 lakh crore amid nationwide COVID-19 lockdown, UnionFinance Minister Nirmala Sitharaman on Wednesday informed Rs. 3 lakh crorecollateral-free automatic loans for businesses, including MSMEs.
The Finance Minister said that borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover will be eligible for these. The loans will have a four year tenor with a moratorium of 12 months on principal payment, while interest will be capped, she added.
"100 percent credit guarantee cover to banks and NBFCs onprincipal and interest. The scheme can be availed till October 31, 2020. 45lakh units can resume business activity and safeguard jobs," the FinanceMinister said, while addressing the media.
She also stated that to provide stressed MSMEs with equitysupport, the government will facilitate the provision of Rs. 20,000 crore assubordinate debt.
"Prime Minister laid out a comprehensive vision, and thatvision was laid out after wide consultations with several sections of thesociety… Essentially this is to spur growth and to build a very self reliantIndia and that is why this whole initiative is called Atmanirbhar BharatAbhiyan," Sitharaman said.
"Atmanirbhar (self-reliant) India does not mean India is tobe an isolationist country," she added.
It may be mentioned that beginning today, over the next fewdays the Union Finance Minister along with the team will address media to putforth Prime Minister's vision.
