Now the way to get cheap and easy loans has become easier for the MSME sector in the country. An important announcement has been made by the Reserve Bank of India (RBI), due to which small and medium enterprises will get huge financial relief.
The government informed Parliament that MSMEs have now linked their loans to external benchmarks to provide them with cheaper loans. Under this arrangement, the interest rate on the loan will be reset every three months, so that the benefit of the change in the interest rate can be quickly passed on to the MSME industries. Also, existing loan holders are also given an opportunity to switch to the new system with mutual consent.
Also increase employment opportunities
The main objective of these measures is to provide loans to small and medium enterprises at low interest rates, so that they can expand their business easily. This decision of the government will provide a strong support to the MSME sector and also increase employment opportunities.
Along with this, several concessions have been given to MSMEs under the Quality Control Order (QCO). An additional period of six months has been given to micro industries and three months to small industries to avoid damage to domestic production. Relaxation has also been given for import of raw materials for export, limited import for research and development (R&D) and clearance of old stock.
Substantial relaxation in BIS fees
The government further said that MSMEs will be given significant relaxation in BIS fees, so that they do not have to bear additional financial burden. Apart from this, facility of availing loan for purchase of machinery and equipment under mutual credit guarantee scheme is also made available.
Importantly, micro and small enterprises will not be required to provide any collateral for loans up to ₹10 lakh. The government believes that all these measures will strengthen the MSME sector financially and give a new impetus to the country's economy.
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