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

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

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

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'Win-win situation for everyone'

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

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Finance Minister Nirmala Sitharaman on Wednesday announced a series of liquidity measures for millions of small businesses reeling under the 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 turnover will be eligible. These loans will have a four-year tenure and have a moratorium for 12 months on principal payment.

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There will be a 100% credit guarantee cover to banks and non-banking finance companies on principal and interest. The 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.

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(with inputs from ANI)