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MSMEs 3L Cr Collateral Free Loans Opportunity Is Best Chance for Industrialist


The outbreak of the pandemic COVID-19 has taken a toll on the world economy. For a developing country like India, it has been a matter of serious concern. According to the official estimate, India has approximately 63.05 million micro industries, 0.33 million small, and 5,000 medium enterprises. The existing pandemic has created a crisis with millions getting jobless and millions of MSME (Micro, Small and Medium Enterprises) panting for breath. This has also created a panic amongst the industrialists and has made them find ways to survive.


However, with time, the economy needs revival. Strong financial decisions will always be welcomed by the manufacturing industries and would come as a breather. Keeping in mind the future economy, the government of India, in its recently announced package for financial revival, has tried to provide a sigh of relief to the existing MSMEs and associated industries. With a package of worth Rs. 20 lakh crores (almost 10% of India's GDP), the Honorable Finance Minister has left no stone unturned to revive the severely hit Indian economy. The minister announced a heap of liquidity measures. One of them is the announcement regarding collateral-free automatic loan worth Rs 3-lakh crore.


Features of the 3L Cr Collateral Free Loans

Before knowing the features, it is necessary to know who all industrialists are eligible for. According to the set conditions, borrowers who have Rs 100 crore turnover and Rs 25 crore outstanding are eligible for.


The salient features of this loan opportunity include--


  • - Tenure of 4 years with a moratorium for 4 months
  • - 100% credit guarantee cover
  • - Interest is going to be capped
  • - No fresh collateral
  • - No guarantee fees

The scheme is made available to the industrialists and MSMEs till October 31, 2020.


This loan opportunity means an industrialist whose existing industry has a turnover of over Rs. 100 crores can apply for revival or expansion. If the industrialist wishes to acquire an industrial property for sale in Mumbai, then he/she can apply for the loan.


How the Announcement is going to be Beneficial?

According to the report, the announcement regarding 3L Cr Collateral Free Loans would come as a relief to over 45 lakhs industries. The industries can now try their best by generating employment either boosting their production or by the means of expansion.


According to the experts associated with the industries, many MSMEs and industrialists will take this as an opportunity to have their business venture expanded. The loan facility would help them in their acquisition of industrial property for sale in Mumbai. This would expand their size apart from the production capacity. This collateral free loan facility would also help the industrialists to take the next course of action by buying new machines and production units.


Apart from the 3L Cr Collateral Free Loans, the Government of India has also taken measures for reviving another 2 lacs stressed MSMEs and industries with the equity support in the form of subordinated debt of another Rs. 20,000 crores. The promoters of the stressed industries and MSMEs would be given debt by the banks for either expansion or boosting their production.


Other Measures for the Industrialists

Often Indian industries face stiff competition from the outside world or the foreign investment firms. To give a respite, the government has banned global tender for government procurement for an amount up to Rs. 200 crores.


Thus, an industrialist who would like to go for the acquisition of an industrial gala for sale in Mumbai worth Rs. 199 crores would need not to face global competition. This is an initiative taken towards helping the local industrialists and industries to become self-reliant.


Conclusion

In light of the present COVID-19 situation, the announcement is a big booster as far as providing financial support to the economy is concerned. Not only the loan announcement is going to help the stressed industries and MSMEs in their process of revival, but it also would pave a way for expansion by making easy availability of credit for acquisition and merger of industrial property for sale in Mumbai. The financial organizations are facilitating the lending process to these industries.