FM Sitharaman announced ₹30,000 cr liquidity facility for NBFCs, housing finance companies and MFIs
Among other big bang announements, Finance Minister Nirmala Sitharaman on Wednesday announced collateral free automatic loans for businesses, including MSMEs, up to ₹3 lakh crore.
She also said ₹45,000 crore liquidity will be infused into NBFCs through partial credit guarantee scheme. FM Sitharaman announced ₹30,000 cr liquidity facility for NBFCs, housing finance companies and MFIs.
NBFCs, HFCs and MFIs with low credit rating require liquidity to do fresh lending to MSMEs and individuals and hence the liquidity infusion, she said.
Electricity distribution companies are facing serious crisis, hence emergency liquidity infusion of ₹90,000 crore in discoms, FM announced.
Under the MSME measure, borrowers with up to ₹25 crore outstanding and ₹100 crore turnover would be eligible for the special collateral free loan.
The loan will have a 4 year tenor with moratorium of 12 months on principal repayment and the interest will be capped.
There will be a 100 per cent credit guarantee cover to banks and NBFCs on principal and interest. The initiative can be availed till October 31, 2020, and no guarantee fee and fresh collateral would be required.
On the back of the scheme, 45 lakh units can resume business activity and safeguard jobs.