Medium small and micro enterprises(MSMEs) in India have been the worst affected by the economic downturn being witnessed worldwide due to Covid 19. In April this year, out of the 75 million SMEs in India, 19 to 24 % were at the risk of elimination. In the next one year to 18 months, 10-25 million people employed with small and medium businesses were set to become jobless.(2) With the GDP growth of India projected at a paltry 1 to 2% by the end of this year, their financial worries seemed to have only begun. However, the government has been quick to respond to their woes and lend a helping hand.
Finance Minister Nirmala Sitharaman announced a 20 lakh crore stimulus package in May this year to give a fillip to the economy. Several measures were introduced to build self-reliance among India’s MSME industry which had been battered due to the impact of the nationwide lockdown imposed in March. Rs. 20,000 crores were earmarked to be provided as subordinate debt for MSMEs with equity concerns or those declared as non=performing assets due to the financial stress. Not only this, financial institutions such as banks and NBFCs were directed to provide 20% of their outstanding credit as on Feb 29, 2020 as a part of collateral free MSME loan package of Rs. 3 lakh crores.
Businesses with a turnover of 100 crores or more and SMEs with 25 crore outstanding credit could take SME loan such as the one available on Finserv MARKETS that comes with a loan amount as high as Rs. 30 Lakhs. It was also declared that a moratorium of 12 months on the payment of principal amount for this 4 year scheme that can be availed till October 31 this year. Borrowers could rely on total credit guarantee from the Government on both the principal and interest amount by the lender.
Towards the end of May, as RBI cut the repo rate further by 40 basis points, small business owners looking for funding had another reason to rejoice as loans linked to the external benchmarks became even more affordable. You can easily apply for a MSME loan available on FInserv MARKETS online after checking the eligibility criteria and submitting a few necessary documents and get it approved within 3 minutes. Choose to repay the loan as per your own financial comfort with flexible tenures that suit your needs.
The ease of borrowing a SME loan has also been helped by the revision in the existing definition of SMEs. Micro units are defined as those with a turnover less than Rs. 5 crore and an investment below Rs. 1 crore, small units with a turnover not exceeding Rs. 50 crores and investment under Rs. 10 crores. Businesses with revenue less than 100 crore but an investment below Rs. 20 crore were categorised under the medium category. With the MSME sector contributing 50% to exports, more firms coming under this ambit after the new categorisation could boost India’s GDP amid trying times today and is a step in the right direction.
By July 1, both private and government run lending institutions had sanctioned a total of Rs. 1.10 lakh crore out of the 3 lakh crore MSME loan package. Recent data points that cumulative loan sanctions stand at Rs. 1.30 lakh crore by July end. Out of the total amount, 17.41% was disbursed by July 1, while the figure rose to 27.35% in the next 22 days, i.e. by July 23. With a target of providing as many as 45 lakh business units funding through the Atma Nirbhar Bharat scheme, loans have been sanctioned to 38.19 lakh accounts and disbursed to 20.16 lakh accounts as per official data. (3)
Private banks are disbursing 5.6 times more amount per account as compared to government run entities with an average lending amount of Rs. 14.95 Lakhs per borrower vis-à-vis Rs. 2.66 Lakhs for PSUs. Private lenders have been doling out big ticket loans with a total sanctioned amount of Rs. 58,673 crore while that of public sector banks stood at Rs. 71,818 crore. The ultimate beneficiary is of course the small business owner, who has easy access to finance even in such tough times to revamp the company.
An SME loan available on Finserv MARKETS comes with competitive interest rates, high loan limit of upto Rs. 30 Lakhs and flexible loan duration anywhere from 12 months to 5 years as per your convenience. So if you have been struggling to keep your enterprise afloat amid a cash crunch, need to pay your staff or necessary bills, office space rent etc, do not shy away from taking a MSME loan.
You can easily apply online for the Bajaj Finserv MSME loan on Finserv MARKETS in a few simple steps. The loan amount is transferred to your bank account within 24 hours of approval! So do not let any hurdle stall your business dreams, opt for a SME loan today and realise your vision.
Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.