Rs 3 lakh crores Collateral free Automatic Loans for Businesses, including MSMEs
- Businesses/MSMEs have been badly hit due to COVID 19 need additional
funding to meet operational liabilities built up, buy raw material and restart
- Decision Emergency Credit Line to Businesses/MSMEs from Banks
and NBFCs up to 20 of entire outstanding credit as on 29 2 2020
- Borrowers with up to Rs 25 crore outstanding and Rs 100 crore
- Loans to have 4 year tenor with moratorium of 12 months on
- Interest to be capped
- 100 credit guarantee cover to Banks and NBFCs on principal and
- Scheme can be availed till 31 st Oct 2020
- No guarantee fee, no fresh collateral
- 45 lakh units can resume business activity and safeguard jobs
Rs 20,000 crores Subordinate Debt for Stressed MSMEs
- Stressed MSMEs need equity support
- GoI will facilitate provision of Rs 20 000 cr as subordinate debt
- Two lakh MSMEs are likely to benefit
- Functioning MSMEs which are NPA or are stressed will be
- Govt will provide a support of Rs 4 000 Cr to CGTMSE
- CGTMSE will provide partial Credit Guarantee support to
- Promoters of the MSME will be given debt by banks, which will
then be infused by promoter as equity in the Unit
Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds
- MSMEs face severe shortage of Equity.
- Fund of Funds with Corpus of Rs 10,000 crores will be set up.
- Will provide equity funding for MSMEs with growth
potential and viability.
- FoF will be operated through a Mother Fund and few
- Fund structure will help leverage Rs 50,000 cr of funds at
daughter funds level
- Will help to expand MSME size as well as capacity.
- Will encourage MSMEs to get listed on main board of Stock
Existing and Revised Definition of MSMEs
Reference: I have collated the above slides from the Government of India presentation for quick reference.
Download Here: Atmanirbhar-Bharat-MSME-Benefits