PM Modi’s New Year’s Eve address: Multiple sops announced for SMEs

Prime Minister Narendra Modi in his New Year’s eve address on December 31 announced sops for the SME and MSME sector. “To increase the employment that SMEs and MSMEs can provide, we are increasing the credit guarantee to Rs 2 crore from 1 crore,” PM Modi said. “Through a trust, the government will give banks guarantee to give credit to small enterprises. The entire Rs 2 crore will be covered by credit guarantee,” he said. “For small enterprises, cash credit limit will be increased from 20% to 35%. Small shopkeepers and small businessmen will get more credit at lower rates,” he said. “For digital transactions the working capital loan will increase from 20% to 30%,” he added.

PM Modi called the massive demonetisation drive of his government a historic “shuddhi yagana”. Lauding the 125 crore Indians who supported the decision and felt the pain, but were ready to sacrifice, PM Modi said, “After Diwali, after this announcement, we saw that everyone was determined to sacrifice and bear pain to defeat ill forces in the economy.” “Kuch baat hai ki hasti mitati nahi humaari – this is what the countrymen have proven,” PM Modi said.

Assuring people of better days ahead, PM Modi said that banks have been urged to focus on dealing with the problems that people are facing. “Banking people have been asked to ease the problems that people are facing, this is particularly for the rural areas, so that villagers and farmers don’t have to bear any more pain,” he said. PM Modi started his address by saying that the youth of India will welcome the New Year with new enthusiasm.

PM Modi gave a big boost and cheer to common man looking to buy houses in both urban and rural areas. PM Modi announced new housing schemes as a gift post the massive support for demonetisation. For urban areas, two housing schemes were announced. Under the first scheme, for a home loan up to Rs 9 lakh, the borrower will get 4% discount on interest charges. Under the second scheme, for home loans up to Rs 12 lakh a discount of 3% would be given on the interest charges. In rural areas, for people who are looking to build a new house or want to reconstruct and expand their existing homes, a 3% interest discount would be given up to borrowings of Rs 2 lakh.

Source: The Financial Express