Due to the impact of the pandemic, Businesses in India got affected badly. The economy too suffered a huge impact. Hence keeping the economy in mind, the Government of India decided to provide collateral-free loans to MSME business owners in India.
The loan amount that can be given totals to Rs 3 trillion (3 lakh crore). National Credit Guarantee Trustee Company i.e. a section of the Government will take the guarantee of these loans.
As of the third week of July 2020, Banks in India have sanctioned more than Rs 1.23 trillion worth MSME loans. This is almost 41% of the promised amount. Out of these, Rs 68000 crore worth loans have been disbursed. The majority of the loan amount has been disbursed by the Public sector Banks.
Here are some of the top features of MSME loans:
- ■ The main aim of this special loan is to improve credit flow in the MSME sector so the economy can grow rapidly.
- ■ These special loans to small and medium enterprises are offered for a maximum period of 4 years that includes 1 year of the moratorium.
- ■ The maximum amount for an MSME loan cannot exceed 25 crores.
- ■ Interest rates on MSME loans will vary across Banks and NBFCs i.e at 9.25%* for Banks and 14%* for NBFCs.
- ■ With the help of MSME loans, the government aims to improve the overall development of the small scale industry. This can be done through skill development and training programs on a regular scale.
- ■ MSME loans also aim to upgrade technology levels of the small and medium business sector.
Why should one apply for this loan?
Businesses have been impacted highly. Taking a business loan will mean high EMI and repaying it on time also is difficult in such an environment. Hence with the help of MSME loans, you get collateral-free loans at a low-interest rate. This allows you to run your business with a free and open mind.
Where can I apply for an MSME loan in India?
It can be confusing to find the correct place to apply for the best MSME loan in India. This is where Ruloans enters. You can visit our website and apply for the loan there. Simply CLICK HERE to get the best deals on MSME loans today.