Categories: Business

Rs 3 lakh crore credit guarantee scheme may be launched this week

Photo: FILE

credit guarantee scheme

new Delhi. A loan guarantee scheme of Rs 3 lakh crore for Micro, Small and Medium Enterprises (MSME) is likely to be released this week. It is part of the government's Rs 20 lakh crore economic stimulus package. A senior public sector bank official told PTI that banks would offer a guarantee free loan of Rs 3 lakh crore for small businesses. For this, an attractive interest rate of 9.25 percent can be kept. Currently, banks lend to the MSME sector at 9.5% to 17% interest rate based on risk assessment.

The official said that along with this, the maximum interest rate on loans to be disbursed by non-banking finance companies (NBFCs) can be increased to 14 percent. The scheme is likely to be introduced this week after getting approval from the government. Finance Minister Nirmala Sitharaman on May 13, while releasing the first installment of the economic stimulus package, announced to provide mortgage free loans to the MSME sector.

This post was published on May 18, 2020 9:11 am

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