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LATEST NEWS UPDATES | High rates, low demand: Stressed MSMEs can’t tap into Govt relief -Sunny Verma

High rates, low demand: Stressed MSMEs can’t tap into Govt relief -Sunny Verma

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published Published on Jun 22, 2020   modified Modified on Jun 22, 2020

-The Indian Express

Viable companies, with good credit history, are able to raise funds, but the most needy among the MSMEs are facing a double whammy: slump in demand and lack of finance.

Banks have started disbursing funds to Micro, Small and Medium Enterprises under the 100% Emergency Credit Line Guarantee Scheme announced by Finance Minister Nirmala Sitharaman last month but for many firms, hit hard by the pandemic lockdown, credit is still a huge challenge.

Viable companies, with good credit history, are able to raise funds, but the most needy among the MSMEs are facing a double whammy: slump in demand and lack of finance.

Official data shows that as of June 18, state-owned banks sanctioned loans worth Rs 40,416 crore under the scheme of which Rs 21,028.55 crore has been disbursed.

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The Indian Express, 22 June, 2020, https://indianexpress.com/article/india/msme-credit-funds-covid-economic-package-6470200/


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