- The loan will be available till 31.10.2020 to those MSMEs with outstanding loan upto Rs.25 Cr as on 29th Feb 2020 or turnover of Rs.100 Cr.
Tenure 4 years with a moratorium of 12 months on loan repayment.
The Govt will provide credit guarantee cover to both Banks and NBFC through Credit Guarantee Fund for Micro and Small Enterprises.
First year interest on loan will be accumulated and spread over the remaining tenure.
Banks can charge Interest maximum 9.25% pa.
- NBFC can charge Interest maximum 14.00% pa.
- The scheme is applicable for existing customers only.
- Borrowers with 60 days past dues entitled for the scheme
Global tenders in government procurement will be disallowed for up to Rs 200 crore or less. This will allow MSMEs a chance to supply for these big projects. Small units can be part of government purchases and now Self-reliant India can Make in India.
- A corpus of Rs 10,000 crore though mother-fund and daughter-fund framework.
- A Rs 50,000 crore ‘fund of funds’ through ‘mother fund – daughter fund’ framework is being created, to expand their capacity and to get listed on markets which they choose.
- E-Market linkage for SMES since trade fairs and exhibitions may not be held post-Covid.
- Manufacturing and services are now one classification.
- Micro: Investments less than Rs 1 crore and turnover of less than Rs 5 crore
- Small: Investment less than Rs 10 crore and turnover less than Rs 50 crore
- Medium: Investment less than Rs 20 crore and turnover less than Rs 100 crore