Govt-backed Loan Scheme Benefitted MSMEs, Says President Ramnath Kovind

As the budget session commences today, President Ramnath Kovind while addressing the Parliament said millions of small businesses benefitted from various schemes rolled out by the centre since the outbreak of the pandemic.

Govt-backed Loan Scheme Benefitted MSMEs, Says President Ramnath Kovind

The schemes announced as part of the Aatmanirbhar Bharat economic package by the finance minister Nirmala Sitharaman to spur economic revival included Rs. 3 lakh crore emergency credit line guarantee scheme (ECLGS), equity infusion through FoF and Rs. 20000 crore for distressed MSMEs.

"Efforts such as the Rs. 3 lakh crore rupee emergency credit (line) guarantee scheme, the ₹20,000 crore special scheme for the stranded MSMEs (micro small and medium enterprises) and the Fund of Funds have benefitted millions of small entrepreneurs," said the President at the joint sitting of both the houses.

The ECLGS scheme was rolled out just after the nationwide lockdown to facilitate businesses in paying for the various obligations such as rent, salaries and other restocking related expenses. The other Fund of Funds initiatives is likely to increase the size as well as capability of small businesses and will also boost those with good track record of financial performance to get listed on the domestic exchanges.

"So far more than ₹25 crore loans have been given under the Mudra scheme, out of which about 70% loans have been given to women entrepreneurs," Kovind said. Also, the centre has come up with several measures to provide new employment opportunities to women.

GoodReturns.in