FM Announces Rs 3 lakh cr Collateral Free Automatic Loan for Businesses

New Delhi: Finance Minister Nirmala Sitharaman on Wednesday 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.

In a major initiative Government announces Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs. #AatmanirbharBharat pic.twitter.com/jgnWeKYrWs

— PIB India (@PIB_India) May 13, 2020

The loan will have 4 year tenure and will have 12 month moratorium, he said.

Also, Rs 20,000 crore subordinate debt will be provided for stressed MSMEs, she said adding this would benefit 2 lakh such businesses.