The announcement of the prime minister's announcement to get a loan of up to Rs 1 crore in 59 minutes by Micro, Small and Medium Enterprises (MSME), has now begun to be implemented by the MSME Ministry.
But if the guidelines of the scheme of interest subsidy of 2% on loan or incremental loan are considered, then this discount will not be available to all small units nor will its approval be instantly available.
The benefits of the scheme will be available only to those units which have both industry base and GST registration. Industries already benefiting from any interest subsidized scheme under the Central or State Governments will not get the benefit of this. Exporters taking advantage of interest exemption on pre-shipment and post-shipment credit by the commerce ministry have also been excluded from its scope. This discount will not be available on the existing or earlier loan account, which is declared as NPA.
The scheme will be for the current and next financial year, for which the ministry has allocated around 975 crores. For this, SIDBI has been made a nodal agency, but the responsibility of giving loan and liability is put on bank and financial institutions.
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