Finance minister Nirmala Sitharaman on Wednesday shared the policies and the criteria for the allocation of relief funds for the MSME sector. The allocation is part of the overall INR 20 lakh Cr economic stimulus package announced by Prime Minister Narendra Modi on Tuesday (May 12, 2020).
Sitharaman rolled out a collateral-free automatic loan for MSMEs which has a corpus of INR 3 Lakh Cr. Tech startups registered as MSMEs can avail the benefits as long as they fit the eligibility criteria. In the last couple of years, many startups have registered themselves as MSMEs to avail the benefits that the government offers to businesses in this class.
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