Collateral Free Loans to MSME's
- By Admin
- 24 May
Finance Minister Nirmala Sitharaman laid out the structure of 3 Lacs Crore Economic Relief Package to MSME's first announced by Prime Minister Sh. Narendra Modi.
MSME Units having outstanding loans amounting to Rs. 25 Crores or Turnover up to 100 Crores can claim this benefit.
She further announced that these loans will be provided without any guarantee fee. She also informed that tenor of this loan will be 4 years in which moratorium of 12 months has been given. These loans will be provided to MSME in automatic form based on the outstanding loan as on 29.02.2020.
Now Banks should not be worried to extend Loans as these loans are fully guaranteed by Government.
She said that detailed instructions have been given to MD’s and CEO of Public Sector Banks and NBFC’s that these collateral-free loans will be 100% guaranteed by Govt.
She further stated that liquidity will start improving in the market from 1st June 2020.