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NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday announced credit guarantee loans for micro, small and medium-sized enterprises (MSMEs), which are expected to help some 4.5 million units return to business.
Announcing the details of the ₹Sitharaman said the 20 trillion fiscal stimulus package said that unsecured automatic loans will benefit MSMEs with up to ₹25 million outstanding loans and ₹100 million sales.
Outline size is ₹3 trillion, he said, adding that the loans will have a 12-month moratorium. “The loans are 100% guaranteed as coverage for banks and non-bank financial companies on capital and interest. They will be available until October 31. No new guarantees are required.”
Sitharaman also said that the next wave of self-sufficient reforms as a guiding principle will focus on land, work, liquidity and laws.
“Basically, this is to stimulate growth and build a self-sufficient India. That is why this initiative is called “Atmanirbhar Bharat Abhiyan”. The vision of a self-sufficient India, the minister said, is based on the pillars of the economy, infrastructure, technology-driven systems, demographics and demand.
Prime Minister Narendra Modi announced on Tuesday the long-awaited stimulus package for ₹$ 20 trillion for companies and workers to soften the devastating blow of closure that has brought many companies to the brink of bankruptcy, with income and cash flows disappearing overnight.
Comprising around 10% of India’s quality domestic product (GDP), the package will focus on land, labor, liquidity and the law. It represents almost a full year of India’s gross tax revenue and includes the monetary easing announced by the Reserve Bank of India.
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