Pradhan lauds 3 lakh cr booster for MSMEs; says entrepreneurs need 'hassle-free' money

Union Minister Dharmendra Pradhan appreciated Rs 3 lakh crore collateral-free loans anunced for MSMEs by Finance Minister as a part of stimulus pack. Union Minister has stated that entrepreneurs do t need free money but certainly require 'hassle-free' money. Union Finance Minister had anunced collateral-free automatic loans worth Rs 3 lakh crore and a series of or measures as a part of second stimulus pack worth Rs 20 lakh crores anunced by Prime Minister on Tuesday. 

Union Minister Pradhan, while speaking to ANI, also said that MSMEs can bring techlogy from outside and tie-up with global companies and low-cost capital as well. Exuding confidence, Union Minister added that country is going to occupy a place in global supply chain. 

READ | Union Min RS Prasad Lauds Govt's Rs 3 Lakh Cr Strong Booster For MSMEs; 'more To Follow'

'Win-win situation for everyone'

Reacting to Centre's decision to disallow any global tender for up to Rs 200 crores, Pradhan said that it was in-line with Prime Minister's 'Vocal for local' appeal. He added that clusters for production houses will be given collateral loan assurances and marketing assurance of ir products. Labelling it a 'win-win situation' for everyone, Pradhan said that labourers, working-class and factory workers would be beneficiaries of schemes introduced. 

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Finance Minister Nirmala Sitharaman on Wednesday anunced a series of liquidity measures for millions of small businesses reeling under impact of Coronavirus lockdown, including collateral-free automatic loans worth Rs 3 lakh crore. Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turver will be eligible. se loans will have a four-year tenure and have a moratorium for 12 months on principal payment.

READ | Yogi Adityanath Welcomes MSME Measures, Anunces Online Loan Fair Worth Rs 2,000 Crore

re will be a 100% credit guarantee cover to banks and n-banking finance companies on principal and interest. scheme can be availed till October 31. "This will enable 45 lakh micro, small and medium enterprise (MSME) units to resume business activity and also safeguard jobs," said FM Sitharaman.

READ | FM Nirmala Unveils India's Rs 20 Lakh Crore Pack: FULL List Of First 15 Measures Here

(with inputs from ANI)