Get a loan of 1 crore for MSME businesses in just 59 minutes

Prime Minister Narendra Modi announced on Friday that  Micro and Small and Medium Enterprises (MSME) can get a loan up to 1 crore in just 59 minutes. MSME sector was most affected when Demonetisation and GST came. It is a Diwali gift for small-scale businesses. MSME is the biggest employment generator after agriculture. 
Firms which are registered for GST have the advantage of 2% interest rebate on an additional loan of 1 crore. Interest rate rebate on and post-shipment credit for exports by MSMEs has been raised to 5% from 3%.
Public sector companies will now source at least 25% of their demand from MSMEs against 20% earlier and 3% from units run by women. All central public-sector enterprises will have to join the government’s e-Marketplace (GeM) to facilitate online procurement of common use goods. The prime minister said more than 1.5 lakh suppliers have registered with GeM, including 40,000 MSMEs. 
 
For technology upgradation of MSMEs, the government will spend Rs 6,000 crore to set up 20 hubs and 100 tool rooms. MSMEs in the pharma sector will be created to boost production in the sector, Modi said. All companies of turnover, equal or more than Rs 500 crore would have to now come on Trade Receivables e-Discounting System (TRS) platform so that there is no cash flow issue faced by MSMEs. 
Inspector visits factories also a major issue in MSMEs but Prime Minister announced that inspectors will have to upload reports on the portal within 48 hours, this would rid the MSMEs sector of ‘inspector raj’. 
MSMEs required a single air and water clearance and just one agreement to start a factory. The prime minister also focused on simplifying penalties rules for minor offenses under the Companies Act. He also said that MSME employees should have Jan Dhan Accounts, provident fund, and insurance.