COVID-19 Economic Package 45 Lakh MSMEs To Benefit Via Rs 3 Lakh Crore Loans, Says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman launched collateral-free loans worth Rs 3 lakh crore for MSMEs with turnover as a lot as Rs 100 crore till October 31, 2021, as part of the Rs 20 lakh crore package deal deal launched by Prime Minister Narendra Modi on Tuesday. An entire of 45 lakh MSMEs stand to revenue fro this measure, Ms Sitharaman recognized.

MSME collateral free loans to be 100 per cent credit-free and the moratorium will possible be for first 12 months, Finance Minister Nirmala Sitharaman added.

The definition of MSMEs is being modified; a company with an funding of Rs 1 crore and turnover of Rs 5 crore is a micro-enterprise as per the model new definition; one with Rs 10 crore funding and turnover of Rs 50 crore is a small enterprise; one with Rs 20 crore funding and Rs 100 crore turnover a medium enterprise, Finance Minister Nirmala Sitharaman added.

Prime Minister Narendra Modi on Tuesday launched a Rs 20 lakh crore package deal deal, amounting to 10 per cent of the gross dwelling product, to help an financial system battered by a sweeping weeks-long lockdown to battle the novel coronavirus.