Nirmala Sitharaman announced Aatma Nirbhar Bharat package. There were huge speculations on this since yesterday night’s speech of Prime Minister Narendra Modi. The Finance Minister began announcing key measures focusing MSMEs in India. With these schemes, we do believe MSME sector grows beyond limits. Here are those 6
Collateral free Automatic Loans for MSMEs
If you’re running a business (technically MSME) and looking for a loan to bounce back with operations, this one is for you. The government will provide collateral free loans with no guarantee and a moratorium period of 12 months. This scheme is valid till 31 October 2020 and over 4.5 million business units are to be benefited out of it.
Supporting Stressed MSMEs with Rs 20,000 Crores
You might have taken loans for your business and struggling to repay those loans. Well, the Unuion Government comes with a special package for that too. Reportedly, the government will help these stressed MSMEs with a package of Rs 20,000 Crores.
Your company might have Revenue of Rs 2.5 million and in the coming days you may receive Rs 10 million funding. Your business might receive a new definition with this investment. As per the Aatma Nirbhar Bharat Scheme, even if you receive investment that is four times of Rs 2.5 million, it will continue being a Micro Enterprise.
e-Marketplace Facilitation for MSMEs
If you run home based business manufacturing and selling, essential items, you live by selling on exhibitions. Post COVID-19, we rise to a new normal and scope of exhibitions are pretty less. To help such businesses who live out of exhibitions, the Government is facilitating e-Marketplace to sell their products online.
Apart from these 4, a Corpus Fund and equity infusion scheme was announced. Well, now we have to wait and see the execution which is pretty crucial in a country like India. If well executed, we will probably have lower negative impact of the upcoming economic stress. Also, read my piece on PM Modi’s Speech.