Finance Minister Nirmala Sitharaman on Wednesday announced collateral free automatic loan for businesses including MSMEs up to Rs 3 lakh crore. Announcing the scheme as part of Modi’s Rs20 lakh crore economic package for the country, she said that borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover would be eligible for the special collateral free loan.
The loan will have a 4-year tenor and 12 months moratorium on principal repayment. The interest for such loans will also be capped.
She also announced that a 100% credit guarantee cover will be provided to banks and NBFCs on the principal and interest. The loans will be available upto October 31, 2002 and will not require a guarantee fee or fresh collaterals.
She said this is likely to help 45 lakh units across the country.
She also announced a special liquidity scheme worth Rs30,000 crore and partial credit guarantee scheme of Rs45,000 crore for non-banking finance companies (NBFCs), microfinance institutions (MFIs) and housing finance companies (HFCs).