Latest Business Loan News

Nearly 50 lakh street vendors identified across India for PM SVANidhi scheme

Hardeep Singh Puri, Union Housing and Urban Affairs Minister, told Lok Sabha on February 3, 2022, that a total of 49,48,614 street vendors were identified as eligible to avail benefits under the PM Street Vendor's AtmaNirbhar Nidhi Scheme. These eligible vendors can avail up to Rs. 10,000 as a working capital loan in the first tranche. Once they repay their earlier tranche or tranches, they will get a loan of Rs. 20,000 as the second tranche and up to Rs. 50,000 as the third tranche under the PM SVANidhi Scheme.

From the minister’s reply, it is understood that Uttar Pradesh has the maximum at 8.49 lakh street vendors, followed by Madhya Pradesh at 7.04 lakh street vendors. Maharashtra has 5.84 lakh street vendors, whereas Telangana has 5.02 lakh. No street vendor has been identified as eligible for the PM SVANidhi Scheme in Sikkim. Puri said that on January 4, 2021, the Ministry of Housing and Urban Affairs launched 'SVANidhi se Samriddhi' in 125 urban local bodies for the socio-economic upliftment of street vendors. The beneficiaries of PM SVANidhi Scheme and their family members are supposed to be soon linked to chosen welfare schemes under the central government.

- Feb 7, 2022

Pandemic-affected businesses may require loan restructuring, says banks

Banks have informed the Reserve Bank of India (RBI) that the prolonged restrictions imposed as a result of the second wave of the pandemic have put considerable strain on businesses, which might require loan restructuring. Earlier this month, the central bank allowed lenders to recast loans for borrowers, but the facility was limited to loans of up to Rs. 25 Crores. Since the steps were announced, the number of pandemic cases has risen dramatically across the nation, prompting many states to declare a state of emergency.

The governor of the Reserve Bank of India sought input from banks on the condition of the financial sector, as well as credit flows to a variety of sectors, including small borrowers and MSMEs. He also wanted to know whether bank rate cuts were in line with the Reserve Bank of India's efforts to lower the cost of funds. While the first quarter is typically a slow time for credit development, bankers replied that this year's loan pick-up was even slower due to the lockdown. They went on to say that the prolonged lockdown is harming a large segment of the economy, despite the fact that it is important to prevent the pandemic from spreading further.

- January 29, 2021

Retail and wholesale trades now included under MSMEs

The Government has revised its guidelines to now include retail and wholesale trade under MSMEs (micro, small and medium enterprises). As per the RBI guidelines, this allows them to avail the benefit of priority sector lending and also makes them eligible for various other government schemes for MSMEs.

Echoing this sentiment, the Confederation of All India Traders (CAIT) commented that traders can now benefit by availing finances from various banks and financial institutions. This benefits close to 2.5 crore traders and also allows them to register on the Udyam Portal. Union Minister Nitin Gadkari reinforced this through a tweet, saying that the Government is committed to strengthening MSMEs, calling them the engines of economic growth.

- Jul 02, 2021

The Finance Minister has announced a credit guarantee scheme worth Rs. 1.1 Lakh Crores for pandemic-affected industries

Finance Minister Nirmala Sitharaman proposed a slew of steps on Monday to help pandemic-affected industries. It included a Rs. 1.1 lakh crores loan guarantee scheme for vital sectors, a further Rs. 1.5 lakh crores under the emergency credit guarantee scheme, free visas for 5 Lakh international travellers, extensions of existing schemes such as the Atmanirbhar Bharat Rozgar Yojana and Pradhan Mantri Gareeb Kalyan Anna Yojana, and fertiliser sector subsidies.

The government also announced that the Pradhan Mantri Gareeb Kalyan Anna Yojna (PMGKY) would be extended from May to November 2021. Individuals under it will receive 5 kg of food grain free of charge till November under this programme. The financial implications are expected to be Rs. 93,869 crores, taking the scheme's overall cost to Rs. 2.28 lakh crores. The programme was originally introduced in April and June of 2020, and it was reintroduced in May of this year. The government also stated that it will release climate-resilient varieties with specific features, despite the fact that the focus had previously been on generating higher-yielding crops.

- Jun 29, 2021

Individuals would be able to borrow up to Rs. 5 Lakhs from public sector banks for pandemic treatment

Individuals and their families will be able to get unsecured loans of up to Rs. 5 Lakhs from Public Sector Banks (PSBs) to cover the cost of pandemic treatment. This comes in the aftermath of the pandemic's current second wave, which has swept the country, wreaking havoc on families of all socioeconomic levels.

Individuals, including salaried, non-salaried, and pensioners, can get unsecured personal loans ranging from Rs. 25,000 to Rs. 5 Lakhs to cover the treatment, according to announcements made at a joint press conference by the Indian Banks' Association (IBA) and State Bank of India (SBI). The payback period is 5 years, with an annual interest rate of 8.5 percent charged by SBI. Other banks can set their own interest rates. All of the PSB’s initiatives will be included in the pandemic loan book and fall under priority sector financing.

- May 30, 2021

In the midst of the second wave of the pandemic, the government extends financing to SME

The government has increased the size of the Rs. 3 trillion Emergency Credit Line Guarantee Scheme (ECLGS) to aid businesses affected by the pandemic's second wave. The programme has been renamed ECLGS 4.0, and it now includes the civil aviation sector as well as a loan to health institutions for on-site oxygen generation equipment.

The loan outstanding ceiling of Rs. 500 Crores has also been lifted by the Centre. However, the amount of new loans they can take under the plan is capped at 40% of the previous debt or Rs. 200 Crores, whichever is less. Loans made under ECLGS 1.0 will be eligible for up to 10% further assistance, bringing the total guaranteed loan to 30% of the outstanding amount as of February 29, 2020. In view of the increased stress on debt servicing brought on by the second wave, relief measures under the ECLGS will aid borrowers' liquidity positions. There will be no new costs for the government. This will also help the ECLGS grant pool to be better utilised.

- May 31, 2021