Govt likely to provide additional loans of up to Rs 3 lakh crore to MSMEs: Report
New Delhi | Jagran Business Desk: The centre's economic stimulus for MSMEs (micro, small and medium-sized businesses) amid coronavirus pandemic is likely to include a provision for extra loans of up to 20 per cent or Rs 3 lakh to provide risk cover, said a report published in The Times of India.
Mudra loans funding for small businesses is on the cards, it added.
A proposal has been sent to the cabinet by the finance ministry to MSMEs for fresh working capital, the report claimed. This will be done through the National Credit Guarantee Trustee Company so that the small units could have enough run its businesses.
As of now, the bank has an exposure to more than six crore medium and small business that is estimated to be nearly Rs 15 crore.
Earlier on Tuesday, the finance ministry informed that it contacted 97 per cent borrowers from March 20 to May 8 and approved loans of Rs 65,879 crore.
But, the funding is not enough to pay salaries or other dues from large businesses or government. This is because the sales have almost come to a halt.
The additional working capital may help the bank lend more funds to small businesses. It is also expected that the ministry of finance will ask the RBI to extend loan moratorium beyond a three-month period so that business can get much-needed relief during these tough phase amid coronavirus pandemic.
Besides this, an announcement on a new definition of MSMEs may also help the small business to scale up.
Posted By: James Kuanal