Page 30 - Banking Finance August 2021

ARTICLE

cr) which will invest in VC/PE firms which in turn will affordable working capital loan for resuming their livelihoods
invest in commercially viable MSMEs in meeting their activities after easing of lockdown.
growth requirements.
Y The scheme is expected to facilitate equity financing of Objectives
Rs. 50,000 crore in the MSME Sector. (i) To facilitate WC loan up to 10,000 at subsidized rate of
Y The fund is created mainly to address the problem of interest.
shortage in growth capital for MSMEs, and to encourage (ii) To incentivize regular repayment of loan
funds through venture capitalists and Private Equity
Firms. (iii) To reward digital transactions.
Y All MSMEs are eligible and apply through Investor Funds
on-boarded and registered with proposed Fund of Funds Salient Feature
Y The Scheme is available to all street vendors engaged
Y Fund of Funds aims to achieve private funding leverage
through the use of professional fund managers. in vending in urban areas as on or before March 24,
2020. Initial working capital of up to Rs. 10,000.
5. Interest Subvention Scheme for Y Interest subsidy on timely/ early repayment @ 7% is

MUDRA - Shishu Loans: applicable in this scheme. Besides that monthly cash-
back incentive on digital transactions.
Y The Scheme was introduced in February 2019 to
encourage MSMEs to onboard the GST platform. Y If customer repays the loan on timely or early then he
Extended up to March 31, 2021. will be eligible for taking higher loan. The Scheme shall
Y Udyog Aadhar is not compulsory for units eligible for be implemented up to March, 2022.
GST.
Y An interest relief of 2% p.a., on the outstanding balance Conclusion:
of new or incremental term loan and /or working capital After the lockdown in the country, all the industry came to
loan up to Rs. 1 crore sanctioned by eligible institutions a halt, due to which the MSMEs sector suffered a lot. A
is available. number of steps were taken by the government through the
Y SIDBI is nodal agency for the scheme. Interest Atmanirbhar- Bharat Campaign to overcome the stress of
subvention available only for standard accounts. the sector.

6. PM Street Vendor's Atmanirbhar Certainly, due to the steps taken by the government, not

Nidhi (PM SVA Nidhi): only many MSMEs have come out of stress but many MSMEs
have started getting their old performance. Recently, GDP
This Scheme is launched to facilitate street vendors to access
data of September quarter has shown positive in
manufacturing sector. From which it appears that the steps
taken by the government through Atmanirbhar-Bharat
Campaign have started showing positive effect in Indian
Economy.

The contribution of banks in making the move of the
Atmanirbhar-Bharat Campaign taken by the government
cannot be underestimated. Banks have a very important
contribution that made the government's campaign towards
MSMEs become successful. T

30 | 2021 | AUGUST | BANKING FINANCE