Loans for MSMEs up to Rs 1 cr in 59 mins: PM Modi

Prime Minister Narendra Modi on Friday launched the Centre's Support and Outreach Initiative for Micro, Small and Medium Enterprises (MSMEs) at the Vigyan Bhawan here.

Prime Minister Modi said that every MSME registered under Goods and Services Tax (GST) would be given a rebate of 2 per cent interest on the amount of a new loan or incremental loan of up to Rs 1 crore. He added that MSMEs would get loans of up to Rs 1 crore in 59 minutes.

"Every MSME registered under the GST, will be given a rebate of 2% interest on the amount of a new loan or incremental loan up to Rs 1 crore. Loan of up to Rs 1 crore will be sanctioned for MSME sector in 59 minutes," the Prime Minister said at the launch of MSME Support and Outreach Programme.

The Prime Minister also said that the central government has decided to increase subvention on pre and post shipment credit for exports by MSMEs from 3 percent to 5 percent.

"The government has decided to increase interest subvention on pre and post shipment credit from 3% to 5%," he said.

Prime Minister Modi said that all the companies with a turnover of more than Rs 500 crore would have to come under Trade Receivables e- Discounting System, so that MSMEs do not face trouble in cash flow.

"It is now mandatory that all the companies with turnover of more than Rs 500 crore will have to join TReDS platform, that is Trade Receivables e- Discounting System. So that MSMEs doesn't face trouble in cash flow," he said.

The Prime Minister said that due to many reforms and decisions taken by the Centre, doing business in the country has become very easy today and that World Bank's Ease of Doing Business Ranking, which was released just two days back, is a witness to it.

"Ease of Doing Business increases simplicity and convenience and MSME sector can get the best advantage from it," he said.

Talking about India's jump in Ease of Doing Business rankings, Prime Minister Modi said, "It's a matter of pride for us that India has taken a high jump of 23 ranks in "Ease of Doing Business" ranking this time. Four years ago, when this government wasn't in power, we were at 142nd position. Today, we are at 77th rank and I believe that "top 50" isn't too far from our reach."

On Wednesday, India recorded a jump of 23 positions against its rank of 100 in 2017 to be placed at 77th rank among 190 countries as per the World Bank's 'Ease of Doing Business' report.

He said that MSME is the second biggest sector after agriculture to give employment.

Ensuring social security and economic stability for women in the MSME sector, Prime Minister Modi said that 3 percent of total business from the MSME sector would be reserved for women entrepreneurs.