1 cr loan cleared in 59 mins: Modi

1 cr loan cleared in 59 mins: Modi

PM announces steps to lessen MSME pain

Prime Minister Narendra Modi on Friday announced 12 measures to ameliorate pains of small businesses, including fast-tracking of loan clearance upto Rs 1 crore and an interest subsidy of 2% on such loans sought by GST-registered entrepreneurs.

Modi said the loans upto Rs 1 crore would be cleared in 59 minutes flat. “As we speak, somewhere in the country your entrepreneurial brother or sister is getting a loan ... sanctioned in just 59 minutes,” Modi said. “Think, only 59 minutes not even one hour,” the prime minister said launching an outreach programme for MSME sector here.

He also appealed to big companies to clear bills for procurement from MSMEs quickly and gave them a handle to reach the government if they faced problems at the hands of big businesses.

As per Friday's announcement, the MSME exporters would get a 5% interest subsidy now on pre and post-shipment credit. Earlier they got a 3% interest subsidy.
To make sure the benefits reach small businesses, union ministers will visit 100 aspirational districts and help small businesses.

Calling it a new era for small enterprises, who are the biggest employers after agriculture, Modi asked public sector undertakings to procure at least 25% of their essential buys from the MSME sector.

Modi said these were his Diwali gift to the small and medium enterprises. The gift comes after the government and its banks were criticised for a credit squeeze to MSME sector and reports said that even the GST rollout had not helped this sector in terms of overall credit.