Finance Minister Nirmala Sitharaman on May 13 announced Rs 3 lakh crore collateral free automatic loan for businesses, including MSMEs.
This will benefit 45 lakh small businesses, she said detailing parts of the Rs 20 lakh crore economic stimulus package. The loan will have 4 year tenure and will have 12 month moratorium.
In other words, Collateral free loan to be provided to SMEs with 12 month moratorium; 45 lakh units to benefit, says Finance Minister.
Despite this, Rs 20,000 crore subordinate debt will be provided for stressed MSMEs, she stated adding this would benefit 2 lakh such businesses.