Govt announces Rs 3 lakh cr collateral-free Automatic loans for Businesses, including MSMEs

New Delhi, May 13: In a major initiative Finance Minister Nirmala Sitharaman announced Rs 3 lakh crores Collateral-free Automatic Loans for Businesses, including MSMEs.

Addressing a press conference, Sitharaman said, ''For MSME there is a collateral-free automatic loan and it would give facility of Rs 3 lakh crore.''

''This will enable 45 lakh MSME units to resume business activity and also safeguard jobs,'' FM Nirmala Sitharaman said.

"These loans will have a 4-year tenure, 12-month moratorium to be given. These will be 100 per cent credit guaranteed and available till 31st October 2020": Finance Minister

Sitharaman's press conference comes a day after Prime Minister Narendra Modi announced $265 billion fiscal stimuli to deal with COVID-19 situation in the country. The package is the second largest in Asia after Japan.