MSME economic package in India: requirements and registration for collateral free loans
Finance Minister Nirmala Sitharaman discussed several proposals aimed at MSMEs under Prime Minister Modi's Atmanirbhar Bharat Abhiyan financial package.
Finance Minister Nirmala Sitharaman has laid out a number of measures aimed at MSMEs under Prime Minister Modi's Atmanirbhar Bharat Abhiyan financial package to promote economic growth in India after the coronavirus pandemic has subsided.
The stimulus package was laid out in three tranches by Minister Sitharaman and cover the agriculture sector, MSMEs, small businesses, power distribution companies, migrant workers and farmers. In total, Rs 20-lakh-crore ($266 billion) has been set aside by the Modi administration to boost the Indian economy in the post-pandemic phase.
Among the key elements of the government's aid package for MSMEs were collateral-free loans with capped interest and a 12-month grace period on initial repayments. These can be accessed until 31 October. There will also be a funds made available for MSME growth and a moratorium on global bids for local government tenders.
How to apply for collateral free MSME loans
Rs 3 lakh crore collateral free automatic loan for businesseses will have a four-year tenure and will be made available to some 450,000 MSMEs.
To apply, you will need your Aadhaar number, proof of identity, a 12-month bank statement and your business registration details.
The government website for registration and application for collateral-free loans is: https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx