COVID Emergency Credit Facility for all businesses, not just MSMEs, clarifies FM Sitharaman

COVID Emergency Credit Facility for all businesses, not just MSMEs, clarifies FM Sitharaman

The Emergency Credit Line Facility mandates banks to provide term loans to MSMEs and businesses with Rs 100 crore turnover and Rs 25 crore amounting to 20 per cent of their outstanding credit as on February 29, 2020

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At a FICCI event, FM Nirmala Sitharaman assured that the issue of liquidity has been addressed fairly clearly (File photo)At a FICCI event, FM Nirmala Sitharaman assured that the issue of liquidity has been addressed fairly clearly (File photo)
BusinessToday.In
  • Jun 8, 2020,
  • Updated Jun 8, 2020 8:56 PM IST

Finance Minister Nirmala Sitharaman has clarified that the Emergency Credit Facility announced under the first tranche of Atma Nirbhar Bharat stimulus package covers all businesses, and not just MSMEs. Addressing the FICCI National Executive Committee members, the Finance Minister assured all possible government support to industry with the intent of supporting Indian business and reviving the economy.

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"We are committed to intervene if any of your members have a problem," FM Sitharaman said.

The Emergency Credit Line Facility mandates banks to provide term loans to MSMEs and businesses with Rs 100 crore turnover and Rs 25 crore amounting to 20 per cent of their outstanding credit as on February 29, 2020. The key factor of the scheme is that government stands guarantee for the loans disbursed to MSMEs.

Finance Minister Nirmala Sitharaman has clarified that the Emergency Credit Facility announced under the first tranche of Atma Nirbhar Bharat stimulus package covers all businesses, and not just MSMEs. Addressing the FICCI National Executive Committee members, the Finance Minister assured all possible government support to industry with the intent of supporting Indian business and reviving the economy.

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"We are committed to intervene if any of your members have a problem," FM Sitharaman said.

The Emergency Credit Line Facility mandates banks to provide term loans to MSMEs and businesses with Rs 100 crore turnover and Rs 25 crore amounting to 20 per cent of their outstanding credit as on February 29, 2020. The key factor of the scheme is that government stands guarantee for the loans disbursed to MSMEs.

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