A Rs 1 crore loan in 59 minutes was announced by Prime Minister Narendra Modi for the micro, small and medium enterprises (MSME) on Friday along with a slew of measures intended to boost the sector. The loan would be available through a special portal to give a boost to what Modi termed as the nation's second-biggest employer.
It wasn’t immediately clear which lenders have been earmarked for the fast-track loans.
“As we speak, somewhere in the country your entrepreneurial brother or sister is getting a loan ... sanctioned in just 59 minutes,” Modi said. “Think, only 59 minutes. Just 59 minutes," he said much to the uproar of the audience at Vigyan Bhavan, New Delhi. The MSME 'Support & Outreach Program' was attended by Finance Minister Arun Jaitley and Minister of State for MSME Giriraj Singh.
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MSMEs which are registered under the goods and services tax (GST) can now avail of a loan of up to Rs 1 crore in just 59 minutes, the prime minister said. Also, GST-registered MSMEs will get 2 percent interest subvention or rebate on an incremental loan of up to Rs 1 crore, he said.
Interest subvention on pre-and post-shipment credit for exports by MSMEs has been increased from 3 percent to 5 percent, he said.
All in all 12 decisions, which he termed as "historic", were announced to boost MSMEs.
Talking of India jumping 23 places on World Bank's latest 'Ease of Doing Business' ranking, Modi said in four years his government has achieved what many could imagine. Breaking into top 50 rank is not far away, he said.
The announcement is seen as a counter to overtures to small businesses already made by the Congress party leader Rahul Gandhi who said in August that he would seek to shift the focus of the country’s economic policy towards supporting small and medium-sized firms if the Opposition won power in next year’s election.
--With agency inputs
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Updated Date: Nov 02, 2018 18:31:42 IST