Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs

Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs
• Businesses/MSME’S have been badly hit due to COVID19 need additional funding to meet operational liabilities built up, buy raw material, and restart the business.
• Decision: Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020
• Borrowers with up to Rs. 25 core outstanding and Rs.100 crore turnover eligible.
• Loans to have 4-year tenor with a moratorium of 12 months on Principal repayment
• Interest to be capped
• 100% credit guarantee cover to Banks and NBFCs on principal and interest.
• Scheme can be availed till 31st October 2020
• No guarantee fee, no fresh collateral
• 45 lakh units can resume business activity and safeguard Jobs.