MSME in India is very important as they contribute a lot to our economy. As per a report from the Confederation of Indian Industries, MSMEs contribute a huge amount to us. Here’s a breakup:
MSME contribute 6.11% of India’s manufacturing GDP
MSME contribute 24.63% of GDP from service industries
MSME contribute 33.4% of manufacturing output.
These numbers prove how important they are for India. As we struggle with the impact of COVID-19, small and medium businesses have taken a huge hit. Their expenses have continued to remain the same but sales and profits have plummeted.
In such a scenario if they wish to continue their business, it’s almost impossible. If this goes on for another few months, most of these small and medium business owners will shut shop as they won’t be able to survive this industry.
What can they do?
The best scenario for them is to apply for an MSME loan today. RBI, the apex institution for finance and lending in India launched a new scheme for MSME loans.
This scheme is titled “Guaranteed Emergency Credit Line” (GECL). In this scheme, loans given will be given a 100% guarantee by the National Credit Guarantee Trustee Company (NCGTC). The scheme amount is Rs 3 lakh crores.
What does this mean for the businessman?
This means, you can now borrow up to 25 crores as the loan amount and the guarantee of that loan amount will be taken by NCGTC. The loan tenure is up to 4 years.
You can also apply for a moratorium in the first year of the loan. This means you can get the whole loan amount, use it for your business, and no need to repay the monthly EMI in the first year. From 2nd year onward, you will have to repay the EMI for all 4 years along with accumulated interest.
Where can I apply for an MSME loan?
Ruloans is the best option for you today for the best MSME loans in India. With our network and best offers, any small and medium business owner can visit our website, contact us and get the best deals on MSME loans. Click Here if you wish to apply for an MSME loan in India.