• The loan will be available till 31.10.2020 to those MSMEs with outstanding loan upto Rs.25 Cr as on 29th Feb 2020 or turnover of Rs.100 Cr.
  • Tenure 4 years with a moratorium of 12 months on loan repayment.
  • The Govt will provide credit guarantee cover to both Banks and NBFC through Credit Guarantee Fund for Micro and Small Enterprises.
  • First year interest on loan will be accumulated and spread over the remaining tenure.
  • Banks can charge Interest maximum 9.25% pa.
  • NBFC can charge Interest maximum 14.00% pa.
  • The scheme is applicable for existing customers only.
  • Borrowers with 60 days past dues entitled for the scheme
  • Global tenders in government procurement will be disallowed for up to Rs 200 crore or less. This will allow MSMEs a chance to supply for these big projects. Small units can be part of government purchases and now Self-reliant India can Make in India.
  • A corpus of Rs 10,000 crore though mother-fund and daughter-fund framework.
  • A Rs 50,000 crore ‘fund of funds’ through ‘mother fund – daughter fund’ framework is being created, to expand their capacity and to get listed on markets which they choose.
  • E-Market linkage for SMES since trade fairs and exhibitions may not be held post-Covid.
  • Manufacturing and services are now one classification.
  • Micro: Investments less than Rs 1 crore and turnover of less than Rs 5 crore
  • Small: Investment less than Rs 10 crore and turnover less than Rs 50 crore
  • Medium: Investment less than Rs 20 crore and turnover less than Rs 100 crore

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