Details of the economic package worth Rs 20 lakh crore, under PM’s Atmanirbhar Bharat Abhiyan, were shared by Finance Minister Nirmala Sitharaman on Wednesday.
The main relief in the economic package was given to the Small and medium enterprises (MSMEs) by increasing the credit guarantees to meet the demands of the MSMEs.
MSMEs are usually granted business loans against property, but since the economic crisis has hit every sector of the economy, the prices of property have fallen inhibiting the ability of MSMEs to seek loans.
A collateral-free loan worth Rs. 3 lakh crore has been announced by the Finance Minister for the MSMEs. The tenure for this loan repayment would by 4 years and a 12-month moratorium.
Rs. 20,000 crore subordinated debt were also announced for the stressed MSMEs.With these infusions, the definition for MSMEs has also been altered to allow units with investment up to Rs 1 crore to be called micro-units instead of the previous Rs 25 lakh.