Actions will be taken against banks, if loans to MSMEs are delayed: MoS Finance
Kolkata, Jun 6 (KNN) The Union government has assured Micro Small and Medium Enterprises (MSMEs) of corrective action, if banks delay or create hurdles in disbursing Rs 3,00,000-crore loans allocated to them as relief package.
“This money is meant for entrepreneurs and it should reach them. If you (MSMEs) are facing any such delay, please write to us and corrective actions will be taken and the loan will be disbursed,” said Union Minister of State for Finance and Corporate Affairs, Anurag Thakur during a webinar organised by the Merchants Chamber of Committee and Industry.
He pointed out that it was brought to the Ministry’s notice that a few bank officials at the branch level were creating problems in loan disbursals.
''This led to strong corrective action being taken against those officials,'' he added.
In a bid to boost liquidity for the MSMEs, Finance Minister Nirmala Sitharaman last month had announced Rs 3 lakh crore collateral free loan for MSMEs.
'The collateral free loans are for those with Rs 25 crore outstanding loan or Rs 100 crore turnover. The tenure of the loan will be 4-year and moratorium of 12 months,' FM said at a press conference.
The Finance Minister also announced 100% credit guarantee cover to banks and Non-Banking Financial Corporation (NBFCs) on principal and interest which will benefit 45 lakh units.
Sitharaman further said that the government will create a Fund of Fund to infuse Rs 50,000 crore as equity for MSMEs which are viable businesses and need hand holding.
She also asserted that in order to provide stressed MSMEs with equity support; government will facilitate the provision of Rs. 20,000 crores as subordinate debt.
"This will enable 45 lakh MSME units to resume business activity and also safeguard jobs," she added.