Indicating a steady progress of the Rs 3 lakh crore collateral-free loans proposed for MSMEs in the recent Atma Nirbhar Bharat Package, commercial banks have sanctioned loans worth Rs 1.2 lakh crore under the collateral free loan scheme. <br />On May 12, Prime Minister Narendra Modi had announced the Rs 20 lakh crore package to give succour to businesses and people from the adverse effect of Covid-19. One of the key components of the package was to give Rs 3 lakh crore collateral-free automatic loans for businesses, including MSMEs. <br />The finance ministry said In a short period of about one and a half month, noticeable progress has been achieved in identifying units, sanctioning as well as disbursing of loans to MSMEs. <br />The ministry said that a new front loaded special refinance facility of Rs 30,000 crore was sanctioned by Nabard during Covid-19 to RRBs & cooperative banks. This special facility benefits 3 crore farmers, consisting mostly of small and marginal farmers in meeting their credit needs for post-harvest and kharif sowing requirements. Rs 24,877 crore out of Rs 30,000 crore has been disbursed as on July 6.
