Finance Minister Nirmala Sitharaman | Emergency Credit Line Guarantee Scheme for MSMEs

Indicating a steady progress of the Rs 3 lakh crore collateral-free loans proposed for MSMEs in the recent Atma Nirbhar Bharat Package, commercial banks have sanctioned loans worth Rs 1.2 lakh crore under the collateral free loan scheme. On May 12, Prime Minister Narendra Modi had announced the Rs 20 lakh crore package to give succour to businesses and people from the adverse effect of Covid-19. One of the key components of the package was to give Rs 3 lakh crore collateral-free automatic loans for businesses, including MSMEs. The finance ministry said In a short period of about one and a half month, noticeable progress has been achieved in identifying units, sanctioning as well as disbursing of loans to MSMEs. The ministry said that a new front loaded special refinance facility of Rs 30,000 crore was sanctioned by Nabard during Covid-19 to RRBs & cooperative banks. This special facility benefits 3 crore farmers, consisting mostly of small and marginal farmers in meeting their credit needs for post-harvest and kharif sowing requirements. Rs 24,877 crore out of Rs 30,000 crore has been disbursed as on July 6.