Categories: Business

Rs 10,000 Crore fund of funds for MSME to be operational soon

Photo: GOOGLE

fund of funds for MSME to be operational soon

new Delhi. To help Micro, Small and Medium Enterprises (MSMEs) facing pressure, the 'Fund of Funds' announced in the Self-Reliant India Campaign Package will be launched soon. State Bank of India chairman Rajnish Kumar said this information on Monday. This fund will help funds that invest in capital. The objective of this Rs 10,000 crore Fund of Funds scheme is to provide assistance to MSMEs with better growth prospects in the current difficult times. At a time when these smaller units are struggling with low revenue and lack of equity capital. Describing the various steps taken to help MSMEs, Rajnish Kumar said that banks have announced emergency loan facility to improve the cash position of such businesses affected due to Kovid-19 epidemic.

At the virtual event organized by FICCI, Kumar said, "I understand that the Fund of Funds will be operational soon." Such measures will help in terms of finance. ”Finance Minister Nirmala Sitharaman announced the Fund of Funds under the Self-Reliant India Package of Rs 21 lakh crore in May. This will help MSMEs with potential for growth. They will be able to get help through this fund in spite of heavy equity crunch. Sitharaman said that the Fund of Funds scheme will have a basic fund under which there will be some small funds. These will help MSMEs to increase their size and capacity. In addition, MSMEs will also be encouraged to get listed on the stock exchanges. Under the Fund of Funds scheme, it is proposed to purchase 15 percent of the capital of MSMEs facing high debt pressure. Through this, help will be provided to the businesses going through their initial stages, for which there is no possibility of raising capital from professional companies or venture capital funds. Rajneesh Kumar told about other efforts of banks that the bank has recently launched a 'Gold loan' scheme for MSMEs. A loan of Rs 88 crore has been sanctioned under this scheme within a month. He said, "This is similar to monetization for the business of gold kept idle. We are ensuring the safety of your jewelery and gold, you do not have to pay for the locker also. This plan is getting good support and we are planning to take this product further.

This post was published on August 10, 2020 9:48 pm

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