I am going to start sharing key insights from the FM announcements related to the stimulus. Consider this as the first in the series.
Amidst this Covid-19 lockdown, Borrowers having turnover of Rs.100 crore are now entitled to avail collateral-free automatic loan of Rs.3 lakh crore, even if they have outstanding dues of Rs.25 crore.
The benefit under this scheme can be availed till October 31, 2020 with 4 year tenure along with a moratorium of 12 months on principal repayment.
PLEASE NOTE: This moratorium stands limited to 4 months only, in case principal remains unpaid.
In addition, provision of Rs.20,000 crore is also facilitated as subordinate debt for stressed MSMEs.
By introducing turnover-based criteria, the ambit of MSME is also expanded to allow for higher investment limits.
Basically, the scheme floated by FM is not a stimulus package, and rather a survival package, so that MSMEs can survive the lockdown and restart production.
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