Doctors, CA will also be able to avail MSME loan, even businesses with turnover of 250 crores are now eligible for loan

The government of India has decided to increase the loan coverage of Rs 3 lakh crore declared for MSMEs under the Self-Reliant India Package. The finance ministry has raised the maximum limit for taking loans under the scheme from Rs 5 crore to Rs 10 crore. At the same time, along with entrepreneurs, professionals like doctors, chartered accountants (CA) will also be able to take this loan. Now businessmen with turnover up to Rs 250 crore will also be able to avail MSME loan. At present, only businesses with a turnover up to Rs 100 crore could take this loan.

 

Coronavirus infection has had a negative impact on businesses and the economy. Trade organizations had sought relief from the government to deal with the disaster. Only after this, the government announced the ECLGS scheme for MSMEs in May. Under this scheme, MSMEs are to be given a guarantee free loan of Rs 3 lakh crore at a low-interest rate. Also, to give the benefit of this scheme to more and more businesses, the Union Cabinet also changed the definition of MSME in June. The new definition came into effect from 1st July.

 

On 20th May, the Cabinet Committee approved the Emergency Credit Line Guarantee Scheme (ECLGC). Under this, it has been decided to give loans of 3 lakh crores. To take full guarantee of this loan, the government has created a fund of Rs 41,600 crore. Finance Minister Nirmala Sitharaman said that under the ECLGC, it has now been decided to give loans to a particular person, keeping in mind the merits and conditions of the scheme. Financial Services Department Secretary D. Panda said that under this scheme, professionals like doctors and CAs will be able to take loans for their business. In lending to these professionals, the procedure of loan to the company will be adopted.

 

To avail loans under ECLGC, by February 29 this year, the business should have owed a maximum of Rs 25 crore and could take business loans up to 20 per cent of that outstanding. That is, the businessman could take loans up to a maximum of 5 crores under this scheme. Panda said that the limit of 25 crores has been increased to 50 crores and its 20 per cent means that the businessman can now take loans up to 10 crores. According to the Finance Ministry, as of July 29, under the ECLGC, loans worth Rs 136155 crore have been approved. Out of this, 87,227 crore has been paid.