Announcements by Finance Minister will boost liquidity, empower entrepreneurs, address issues faced by MSMEs: PM Modi

Prime Minister Narendra Modi on Wednesday said announcements made by Finance Minister Nirmala Sitharaman will go a long way in addressing the issues faced by MSMEs and the steps will also empower entrepreneurs.

Prime Minister Narendra Modi on Wednesday said announcements made by Finance Minister Nirmala Sitharaman will go a long way in addressing the issues faced by MSMEs and the steps will also empower entrepreneurs. "Today's announcements by FM will go a long way in addressing issues faced by businesses, especially MSMEs. The steps announced will boost liquidity, empower the entrepreneurs and strengthen their competitive spirit," the Prime Minister said in a tweet.

Sitharaman on Wednesday announced a series of liquidity measures for millions of small businesses reeling under the impact of COVID-19 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.

There will be a 100 per cent credit guarantee cover to banks and non-banking finance companies on principal and interest. The scheme can be availed till October 31. The government has also reduced the statutory Employees Provident Fund (EPF) contribution of private-sector employers and employees from the current mandated 12 per cent to 10 per cent for the next three months.

Sitharaman also announced a Rs 30,000 crore special liquidity scheme for non-banking finance companies (NBFCs), housing finance companies (HFCs) and micro-finance institutions (MFIs). The announcements came a day after the Prime Minister announced a comprehensive Rs 20 lakh crore special economic package to help various sections in dealing with the challenges posed by COVID-19. He gave a clarion call for making India self-reliant. (ANI)