Chennai, Jun 5 (KNN) In a bid to revitalise Micro, Small and Medium Enterprises (MSMEs), suffered due to lockdown, Tamilnad Mercantile Bank (TMB) has planned to extend loans to 53,000 MSMEs.

''TMB, the bank has planned to provide additional loans of 20% of the outstanding as on February 29, 2020. Nearly 53,000 loan customers belonging to MSME/Business Enterprises will get benefited under the initiative,'' the bank said in a statement.

The banks said that instructions have been given to all branches covering the scheme guidelines and disbursements have started.

''No guarantee fee or processing fee or other charges shall be levied for loans sanctioned under the scheme. Eligible loan customers as per scheme guidelines may contact their TMB branches for availing the credit facility,'' the statement quoted Managing Director and CEO, TMB, K V Rama Moorthy as saying.

Recently the Centre has rolled out Rs 20 lakh-crore stimulus to revive the economy with the main focus on revitalising the MSME sector, which is affected due to the lockdown.

Under the scheme, 100% guarantee coverage is provided by National Credit Guarantee Trustee Company for more funding without any additional collateral security.

''The collateral free loans are for those with upto 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 had said at a press conference last month.

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.