COVID-Banking Sector Relief

Fresh Loans to MSME without any additional collatral:

Provider:

Banks and NBFC

Reciever:

All MSME

Having turnover upto 100 Cr and borrowings as on 29/02/2020 upto 25 Cr

Tenure and guarantee:

4 years with a moratorium of 12 months on principal and interest

Scheme can be availed upto 31/10/2020

No additional security required as government will provide complete credit guarantee cover to lenders

 

Rs 20,000 crore subordinate debt

MSMEs declared NPAs or those stressed will be eligible for equity support as the government will facilitate the provision of Rs 20,000 crore as subordinate debt. The government will also provide Rs 4,000 crore to CGTMSE that will offer partial credit guarantee support to banks for lending to MSMEs.

Rs 50,000 crore equity infusion

The government will infuse Rs 50,000 in equity in MSMEs through a Fund of Funds that will be operated through a Mother fund and a few daughter fund. The Fund of Funds will be set-up with a corpus of Rs 10,000 crore to give equity-based funding to MSMEs having growth potential and viability. It will also urge MSMEs to list on stock exchanges.

Definition of MSME revised

For revised definition please visit here

Global Tenders disallowed: 

It was a long drawn demand from MSMEs that they have to face unfair competition in tenders from foreign financial enterprises of giant size in government procurement tenders.To address this issue now it has been decided that there will be no global tenders in such schemes upto 200 crores

Clearing MSMEs dues:

All pending dues of MSMEs to be cleared in 45 days by all PSUs and PSEs

More reliefs are in pipeline.We will keep you updated once they are announced.please visit us to get those update regularly or subscribe to our blog.

 

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