Banks will offer collateral-free loans amounting to Rs 3 lakh crore rupees to small and medium businesses as part of the first round of the relief package announced by Finance Minister Nirmala Sitharaman on Wednesday.
PM Modi, who had promised a Rs 20 lakh crore (Rs 20 trillion) in his televised address to the nation a day earlier, said the announcements made will go a long way in addressing issues faced by businesses, particularly medium and small enterprises that have been considered the bedrock of the Indian economy.
“The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit,” PM Modi said
A big part of Wednesday’s announcement focused on small and medium enterprises that will be entitled to get unsecured loans till October 31. This will be available to units with upto Rs 25 crore outstanding and turnover of up to Rs 100 crore.
She told reporters the government aims to help 4.5 million businesses by October.
Sitharaman will be back tomorrow with more announcements for other sectors.
“We have a responsibility toward the poor, the needy, the migrants and the disabled,” Sitharaman said, in the first of several daily press conferences on the 15-point package.
“Essentially this is to spur growth and to build a very self-reliant India,” she said. “It addresses ease of doing business, compliance and due diligence and the intention is also to build local brands.”
