FM, Nirmala Sitharaman

held a meeting with the heads of foremost non-public quarter banks to take inventory of their preparedness to provide liquidity to the Micro, Small and Medium Enterprises (MSME) zone amid COVID-19 crisis. -liquidity to msme

“FM Smt. @nsitharaman chairing a assembly thru VC with Major Pvt Banks & NBFC to ensure effective roll out of ECLGS and uninterrupted/easy liquidity to Indian MSMEs in this tough time,” the Finance Ministry tweeted on Monday.

The meeting was additionally attend via CEOs of foremost Non-Banking Financial Companies (NBFCs). “Debasish Panda, Secretary, Department of Financial Services, was also present inside the assembly”, the finance ministry said in another tweet.

As of June 11, public quarter banks have sanctioned loans really worth Rs 29,490.eighty one crore below the one hundred in keeping with cent ECLGS, out of which Rs 14,690.84 crore has already been disburse.

On May 21,

The cabinet had approved additional investment of as much as Rs three lakh crore at a concessional charge of 9.25 in line with cent through ECLGS for the MSME area.

Under the scheme, 100 in line with cent assure insurance might be furnished by means of National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs three lakh crore to eligible MSMEs and involved Micro Units Development and Refinance Agency (MUDRA) borrowers inside the shape of a guaranteed emergency credit score line (GECL) facility.

The authorities will also provide a corpus of Rs 41,600 crore for the scheme over the contemporary and coming three monetary years.

The major objective

 The Scheme is to offer an incentive to Member Lending Institutions (MLIs), i.E., Banks, Financial Institutions (FIs) and Non-Banking Financial Companies (NBFCs)

To increase get entry to to, and enable availability of additional investment facility to MSME borrowers, in view of the financial distress due to the COVID-19 crisis, by using supplying them 100 in keeping with cent assure for any losses suffered through them due to non-reimbursement of the GECL investment by means of borrowers,” the government stated.

‘The collateral unfastened loans are for people with Rs 25 crore superb mortgage or Rs one hundred crore turnover. The tenure of the loan could be 4-year and moratorium of 12 months,’ stated Finance Minister Nirmala Sitharaman.

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