6 Benefits for MSME in lockdown

Indian government announced a 20 lakh crore package For COVID pandemic situation of the economic crisis.
The government has also announced several benefits of the MSME sector.
today  we are discussing 6 major benefit MSME in lockdown 

List of 6 major benefit in MSME In lockdown

1. Rs 3 lakh crore collateral-free loans
2. Rs 20,000 crore subordinated debt
3. Rs 50,000 crore equity infusion
4. Revised MSME definition
5. Global tenders disallowed
6. Clearing MSME Dues

•  Rs 3 lakh crore collateral-free loans

This is the first Benefit for MSME in lockdown. Under the MSME the government will provide 3 lakh crore Collateral free loans.

Bank and NBFCs  will offer 20% Outstanding credit as of February 20 2020 for the entire loan to MSME.

25 crore out outstanding units 100 crores turnover companies eligible for taking this loan.
It will be 4-year tenure with a Moratorium 12 months on principal amount.

The government Will give Complete cover of credit guarantee to lenders on principle and interest amount

• Rs 50,000 crore equity infusion

The second benefit for MSME in lockdown. The government will provide 50,000 crores in equity in MSME through to the this fund.

In  that fund 10000 crores of giving equity-based funding to MSMEs Having potential growth and Viability.

In that list stock exchange listed MSMEs also added

This amount also allocated for Collateral free loans Subordinate debt  for MSMEs 
and equity infusion  through  MSME fund.

The amount of 76%  credit  disbursed to MSMEs on this year.

During FY20 450 billion disbursed To MSMEs under Collateral free loan.

• Rs 20,000 crore subordinate debt

Third Benefit for MSME in lockdown. Some MSMEs are declared NPAs Or those who stressed will be Equity support.

The government will facilitate provision amount of 20 thousand crores as debt.

4 thousand crores also provide under the GCTMSE That will offer Partial credit guarantee support To bank for the lender to MSMEs

• Revised MSME definition

Forth benefit for MSME in lockdown. The government has revised the MSME definition. Under new definition.

Manufacturing and service will be defined under Common metric that will be me of investment in plant and machinery and turnover.

More than 50% of Indian export comes via MSME units.

MSME Unit number increase their contribution to India's export bracket with significant growth.

This policy will export-oriented and policy of foreign all the more important in the future.

Previous definition of Manufacturing MSME.

Micro-Enterprise

Less than 25 Lakh investment in manufacturing Enterprises for plant, machinery, and equipment

Small Enterprises

Less than 5 crore investment in manufacturing Enterprises for plant, machinery, and equipment

Medium enterprises

Less than 10 crore investment in manufacturing Enterprises for plant, machinery, and equipment

The revised definition of Manufacturing MSME.

Micro Enterprises

Manufacturing MSMEs Investment is less than 1 crore turnover under the 5 crore.

Small Enterprises

Less than 10 crore investment and turnover under 50 crore.

Medium Enterprises

Less than 20 crore investment and turnover under 100 crore.

Previous definition of Service industry of MSME.

Micro Enterprises

Less than 10 Lakh investment in Service Enterprises.

Small Enterprises

Less than 2 Crore investment in Service Enterprises.

Medium Enterprises

Less than 5 Crore investment in Service Enterprises.

Revised definition of Service Sector MSME.

Micro Enterprises

Manufacturing MSMEs Investment is less than 1 crore turnover under the 5 crore.

Small Enterprises

Less than 10 crore investment and turnover under 50 crore.

Medium Enterprises:

Less than 20 crore investment and turnover under 100 crore.

• Global tenders disallowed

This is the fifth benefit for MSME in the lockdown of unfair competition under the MSMEs  issue from Foreign company in the government procurement tender due to the size and strength defer.

Up to 200 crore government, I will not allowed Global tender in such a scheme.

• Clearing MSME Dues

Sixth benefit for MSME in lockdown.The government Central Public Sector Enterprises will release all pending payments within 45 days.

E-Commerce enterprises Will are used  transaction based on lending Using by data  in E-platform.