Rs 3 Lakh Crore Collateral-Free Automatic Loans To Revive 45 Lakh MSMEs, Safeguard Jobs: Nirmala Sitharaman

New Delhi: Union Finance Minister Nirmala Sitharaman on Wednesday announced collateral free loans up to Rs 3 lakh crore for MSMEs under the Atmanirbhar Bharat package. It will benefit 45 lakh units.

The Highlights

-Borrowers with up to ₹25 crore outstanding and ₹100 crore eligible for collateral-free automatic loans.

-45 lakh units can resume business activity and safeguard jobs due to relief package

-Subordinate debt schemes for stressed NPAs

-6 major steps for SMEs

-15 measures for EPF, small sector enterprises, MFIs, discoms, contractors, real estate and tax measures.

-Income tax refunds of ₹18,000 crore expedited to improve liquidity

The Finance Minister said that she would release details of the vision which Prime Minister Narendra Modi had  put out on Tuesday (May 12) in the next few days.

She said that Rs 20 lakh crore package will focus on strengthening the local brands.

It will be based on five factors of growth, economy, infrastructure, technology-driven systems, demography demand and will be channelized via land, labour, liquidity and law bringing relief to the distressed economy, she said.

“The Atmanirbhar Bharat Mission is not an attempt to isolate India but it talks about a confident India which can rest on its strengths and be able to contribute to the world,” the Union Minister added.