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PM Modi launches 59-minute loan programme to help small businesses

They were part of 12 new decisions to aid the section which PM labelled ‘Diwali gifts for MSMEs’.

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PM Modi on Friday launched a 59-minute loan programme among other initiatives to help small businesses as part of the Modi government’s ‘support and outreach initiative’ for micro, small and medium enterprises in New Delhi.

They were part of 12 new decisions to aid the section which PM labelled ‘Diwali gifts for MSMEs’.

It also included measures to increase the share of small and medium industries in total government procurement from 20 to 25%.

He also praised India improving its rank in the World Bank’s Ease of Doing Business Index and said: “It's a matter of pride for us that India has taken a high jump of 23 ranks in "Ease of Doing Business" ranking this time. 4 years ago, when this govt wasn't in power, we were at 142th position. Today we are at 77th rank & I believe that "top 50" isn't too far from our reach.”

He added: “The government has decided to increase interest subvention on pre and post shipment credit from 3% to 5%. It is now mandatory that all the companies with turnover of more than Rs 500 crore will have to be join TReDS platform, that is Trade Receivables e- Discounting System. So that MSMEs doesn't face trouble in cash flow.”

GST-registered small and medium enterprises (MSMEs) can now avail of loan of up to Rs 1 crore in just 59 minutes, he said announcing the measures.

Also, GST-registered MSMEs will get 2 per cent interest subvention or rebate on incremental loan of up to Rs 1 crore, he said.

Interest subvention on pre and post shipment credit for exports by MSMEs has been increased from 3 per cent to 5 per cent, he said.

In all 12 decisions, which he termed as "historic", were announced to boost MSMEs.

Talking of India jumping 23 places on World Bank's latest 'Ease of Doing Business' ranking, Modi said in four years his government has achieved what many did not believe and achieved what no other nation in the world has done - leaping from 142 rank in 2014 to 77th rank.

Breaking into top 50 rank is not far away, he said.

Reform of processes will help small and medium enterprises (MSMEs), he said.


With inputs from PTI

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