#ModiWithMSME: Modi launches 59-minute loan program for MSMEs
In a bid to help micro, small, and medium enterprises (MSMEs), Prime Minister Narendra Modi, on Friday, launched a 59-minute loan program with a limit of up to Rs. 1cr, along with other initiatives in New Delhi. The loan program was part of 12 new initiatives to help the sector, and PM Modi likened them to "Diwali gifts for MSMEs". Here's more.
Loans in less than an hour
"As we speak, somewhere in the country your entrepreneurial brother or sister is getting a loan... sanctioned in just 59 minutes. Think, only 59 minutes. Just 59 minute," said PM Modi.
Some notable measures to aid the MSME sector
Apart from the faster processing of loan requests, PM Modi said that GST-registered MSMEs would get a 2% rebate on incremental loan of up to Rs. 1cr. Modi also added that interest subvention on pre-shipment and post-shipment credit has been increased from 3% to 5% on exports by MSMEs. Public sector undertakings have to source 25% of inputs from MSMEs, as opposed to the earlier 20%.
The move is a reply to the Congress
The new initiatives to aid the sector are being seen as a reply to the Congress, which earlier made overtures to the sector by saying that it would shift the focus of the country's economic policy towards MSMEs, if voted to power in next year's elections. On October 26, Rahul Gandhi had told industrialists that focusing on MSMEs would help with India's unemployment problem.
Modi on ease of doing business in India
Meanwhile, taking about India's ease of doing business ranking, which jumped 23 places this year, PM Modi said that his government, in four years, had achieved what no one thought was possible. India went from rank 142 in 2014 to rank 77 in 2018. He added that India could easily break into the top 50 countries in the near future.
