Lok Sabha Election 2024, Phase 1: Voting on 102 seats underway
In the first phase of Lok Sabha elections 2024, as many as 102 constituencies spanning across 21 states and Union Territories will elect their new MPs.
Finance Minister Nirmala Sitharaman on Wednesday announced Rs 3 lakh crore collateral free automatic loan for businesses, including MSMEs with turnover up to 100 crore till October 31, 2020.
This announcement is the part of Prime Minister Narendra Modi’s Rs 20 lakh crore economic stimulus package.
This will benefit 45 lakh small businesses, Sitharaman said.
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The minister further said that the loan will have 4-year tenure and will have 12-month moratorium.
There will be a 100 per cent credit guarantee cover to banks and NBFCs on principal and interest. The initiative comes with no guarantee fee and fresh collateral would be required.
Also, MSME definition has been changed to allow units with investment up to Rs 1 crore to be called micro units in place of Rs 25 lakh now. Also, units with turnover up to Rs 5 crore to be called micro units, she said, adding a turnover based criteria is being introduced to define small businesses.
The investment and turnover limits for small and medium businesses have likewise been raised to allow them to retain fiscal and other benefits, she said.
Now the firms with Rs Rs 10 crore investment and turnover of Rs 50 crore fall under small enterprise category. Others with Rs 20 crore investment and Rs 100 crore turnover are medium enterprise, the minister said as she detailed Modi’s 20 lakh crore stimulus package.
Global tenders will be banned for government procurement up to Rs 200 crore, she said, adding this would help MSMEs to compete and supply in government tenders.
It is one among the schemes announced by the Finance Minister on Wednesday.
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