1. Collateral Free Automatic Loan to MSME: No guarantee required. Period 4 Years. No principal repayment for 1 year. Scheme can be availed till 31st Oct 2020. 45 lakh units can resume business activity and safeguard jobs. Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover eligible

2. Stressed MSME: Subordinate Debt 20,000 crore. Two lakh MSMEs are likely to benefit. Govt. will provide a support of Rs. 4,000 Cr. to CGTMSE

3. MSME doing viable business: 50,000 cr. equity infusion for expansion. Fund of Funds with Corpus of Rs 10,000 crores will be set up. Will provide equity funding for MSMEs with growth potential and viability.

4. Definition of MSME changed:

a. Micro: Limit revised upward Investment upto 1 cr. or Turnover upto 5 cr.

b. Small: Limit revised upward Investment upto 10 cr. or Turnover upto 50 cr.

c. Medium: Limit revised upward Investment upto 20 cr. or Turnover upto 100 cr.

d. No difference in manufacturing and service sector for Micro Enterprises

5. Government Tenders: Indian MSMEs and other companies have often faced unfair competition from foreign companies. Global tenders will be disallowed upto 200 cr. Necessary amendments of General Financial Rules will be effected. This will also help MSMEs to increase their business.

6. E market linkage for MSME: e-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions. Fintech will be used to enhance transaction based lending using the data generated by the e-marketplace. Government has been continuously monitoring settlement of dues to MSME vendors from Government and Central Public Sector Undertakings.Within next 45 days all payments will be made to MSME.

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