No MSME Loan will be NPA Till 31st March 2020

Amazing ! Get a MSME loan from Public Sector Banks and don’t pay interest for six months. Bank will not ask you anything. Whereas if you have taken a need based loan i.e. Personal or consumer loan or any other loan, No revival. It seems, slowdown in economy is only for MSME and not for others. 

Read – Government announces merger of public sector banks

Strange for others but not for our finance minister. She has declared that NO MSME LOAN WILL BE DECLARED NPA TILL 31st Mar 2020.

Regarding the relief to MSMEs, FM Sitharaman said an existing Reserve Bank provision empowers the banks to not declare them NPA even after the 90 days. “So if there are stressed assets MSMEs, the banks have enough powers given by the Reserve Bank to not declare him NPA and work out with them if possible to restructure his loan so that he can get out of the difficult situation.

That’s the thumb rule we have offered. That for every one customer who wants a loan, please give him. But for every new, who you give now, you will bring somebody fresh, somebody who has never taken a loan from a bank should be brought and given for the category he wants,” Sitharaman said.

The FM said that junior finance minister Anurag Thakur will oversee the loan programme of PSU banks.