<p>The government Saturday included more businesses and individuals facing Covid-related stress into its Rs 3-lakh crore loan guarantee scheme announced for MSMEs in May, without increasing the size of the pie.</p>.<p>The ambit of the MSME loan scheme was expanded to include individual loans as well, benefiting professionals like doctors, lawyers, chartered accountants and others.</p>.<p>The scheme was announced in May as part of the government’s Atmanirbhar package to provide liquidity support to such firms.</p>.<p>Under the scheme, the government provides full loan guarantee to incremental loans given to borrowers.</p>.<p>“The ambit of the scheme has been increased to include individual loans for working capital purposes. As of July 29, Rs 1.4 lakh crore had been sanctioned under the scheme while Rs 87,227 crore worth of loans disbursed,” Finance Minister Nirmala Sitharaman said.</p>.<p>To help large firms avail the loan facility, the government also increased the annual turnover ceiling of companies that could avail loan under the scheme to Rs 250 crore from the current Rs 100 crore.</p>.<p>“Now, businesses/micro, small and medium enterprises with turnover of up to Rs 250 crore will get credit under the scheme,” Financial Services Secretary Debashish Panda said. The maximum loan that can be availed under the scheme has also been increased to Rs 10 crore from Rs 5 crore and, individual loans have been brought under its ambit too.</p>.<p>The expansion of the loan guarantee scheme comes a day after Sitharaman firmly told the industry to lodge a complaint with her if banks refuse to give loans to MSMEs struggling under the pandemic impact.</p>.<p>The minister on Saturday reassured that the government will do everything to help businesses stand on their own feet again. The RBI too is expected to come up with one-time restructuring of loans for stressed sectors like tourism and hospitality in its monetary policy review due next week.</p>
<p>The government Saturday included more businesses and individuals facing Covid-related stress into its Rs 3-lakh crore loan guarantee scheme announced for MSMEs in May, without increasing the size of the pie.</p>.<p>The ambit of the MSME loan scheme was expanded to include individual loans as well, benefiting professionals like doctors, lawyers, chartered accountants and others.</p>.<p>The scheme was announced in May as part of the government’s Atmanirbhar package to provide liquidity support to such firms.</p>.<p>Under the scheme, the government provides full loan guarantee to incremental loans given to borrowers.</p>.<p>“The ambit of the scheme has been increased to include individual loans for working capital purposes. As of July 29, Rs 1.4 lakh crore had been sanctioned under the scheme while Rs 87,227 crore worth of loans disbursed,” Finance Minister Nirmala Sitharaman said.</p>.<p>To help large firms avail the loan facility, the government also increased the annual turnover ceiling of companies that could avail loan under the scheme to Rs 250 crore from the current Rs 100 crore.</p>.<p>“Now, businesses/micro, small and medium enterprises with turnover of up to Rs 250 crore will get credit under the scheme,” Financial Services Secretary Debashish Panda said. The maximum loan that can be availed under the scheme has also been increased to Rs 10 crore from Rs 5 crore and, individual loans have been brought under its ambit too.</p>.<p>The expansion of the loan guarantee scheme comes a day after Sitharaman firmly told the industry to lodge a complaint with her if banks refuse to give loans to MSMEs struggling under the pandemic impact.</p>.<p>The minister on Saturday reassured that the government will do everything to help businesses stand on their own feet again. The RBI too is expected to come up with one-time restructuring of loans for stressed sectors like tourism and hospitality in its monetary policy review due next week.</p>
