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MSMEs Cannot Be Denied Credit Under Emergency Credit Scheme: FM

Roshni Agarwal
·1-min read

On Friday, Finance Minister Nirmala Sitharaman said banks cannot deny loan under the emergency credit scheme to MSMEs and any denial needs to be reported.
The total credit sanctioned as part of the scheme by both private and public sector banks as of July 23, 2020 stands at Rs. 1,30,491.79 crore, of which Rs 82,065.01 crore has already been disbursed.

"Banks cannot refuse credit to MSMEs covered under emergency credit facility. If refused, such instances must be reported. I will look into it," Sitharaman said at a closed-door event of industry chamber FICCI.

The government as part of the Aatmanirbhar Bharat Package announced a grant of Rs. 3 lakh crore collateral free loan for MSMEs.

Also there was said that for the hospitality sector which includes hotels, aviation will be considered for a one-time loan restricting scheme or extension of moratorium, for which RBI and finance ministry are working out a plan. "I fully understand the requirements of the hospitality sector on extension of the moratorium or restructuring. We are working with RBI on this," she said.

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