Ministry of MSME’s launches funding scheme to help the distressed MSME sector

Highlights of the Scheme are:-

  • This Scheme seeks to extend support to the promoter(s) of the operational MSMEs which are stressed and have become NPA as on 30th April, 2020;
  • Promoter(s) of the MSMEs will be given credit equal to 15% of their stake (equity plus debt) or Rs. 75 lakh whichever is lower;
  • Promoter(s) in turn will infuse this amount in the MSME unit as equity and thereby enhance the liquidity and maintain debt-equity ratio;
  • 90% guarantee coverage for this sub-debt will be given under the Scheme and 10% would come from the concerned promoters;
  • There will be a moratorium of 7 years on payment of principal whereas maximum tenor for repayment will be 10 years.

Detailed Notification: Click Here

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