The proposed Rs 3 Lakh Cr loan scheme for entrepreneurs by the central govt will be made available starting this week. Chairman, Rajnish Kumar said that SBI has started a new loan facility for 22000 MSME entrepreneurs with a single day transfer of Rs 2300 crore. Other banks and financial institutions have also accelerated the process of getting loans to micro and small entrepreneurs. Through the Emergency Credit Line Guarantee Scheme, new collateral/security fees free loans are given to entrepreneurs with the full guarantee from the central government. Any eligible MSME entrepreneur can apply through the nearest bank or National Credit Guarantee Trustee Company Ltd. The deadline to apply for this loan is October 31st.
The Collateral Free Loan scheme of Rs 3 lakh crore was announced to support MSMEs including the ones in the manufacturing sector. On February 29, the Center announced a collateral free loan scheme for MSMEs with up to Rs. The loan term is 4 years. The interest rate is 9.25% for banks and up to 14% for NBFCs.
The SBI says the risk weights for banks are zero as they are guaranteed by the Central Govt. “This is the best scheme to help the MSME sector,” SBI Chairman said. The new loan scheme will be processed even if the bank’s loyal customers send an SMS or email, said the HDFC Bank country head. At the same time, many complain that banks are considering a premium to the new loan scheme for customers who did not take the moratorium when the center announced a three-month moratorium on loan repayment. But banks say they are only looking at repayment capabilities. If the entrepreneurs have a complaint or suggestion, they can contact the government through the portal www.champions.gov.in
