New Delhi: Going in line with the announcement of PM Modi, Union Finance Minister Nirmala Sitharaman on Wednesday announced Rs 3 lakh crore collateral free automatic loan for businesses, including MSMEs, for their growth at this time of coronavirus pandemic. Also Read - Indian-American Couple Develops Low-Cost Ventilator For Covid-19 Patients, Will Soon Be Available in India

Announcing the package, FM Sitharaman said this will benefit 45 lakh small businesses and the loan will have 4-year tenure and will have 12-month moratorium. Also Read - Coronavirus: State Govt Yet to Spend Financial Aid Given by Centre, Alleges Devendra Fadnavis

“Also, Rs 20,000 crore subordinate debt will be provided for stressed MSMEs,” she said adding this would benefit 2 lakh such businesses. Also Read - BGR vs FCS Dream11 Team Prediction, Vincy Premier T10 Cricket League 2020: Captain And Vice-Captain, Fantasy Cricket Tips Botanic Gardens Rangers vs Fort Charlotte Strikers at Arnos Valley Sporting Complex at 10:00 PM IST Tuesday May 26

She further added that a fund of funds for MSME is being created, which will infuse Rs 50,000 crore equity in MSMEs with growth potentials.

The FM added that the definition of MSME has been changed to allow units with investment up to Rs 1 crore to be called micro units in place of Rs 25 lakh now.

“Also units with turnover up to Rs 5 crore to be called micro units, she said, adding a turnover based criteria is being introduced to define small businesses.

She said the investment and turnover limits for small and medium businesses have likewise been raised to allow them to retain fiscal and other benefits.

She added that the global tenders will be banned for government procurement up to Rs 200 crore as this would help MSMEs to compete and supply in government tenders.

On Tuesday, PM Modi had announced a Rs 20 lakh crore economic stimulus package and urged citizens to buy local to make India self-reliant. The package was finalised after consulting various stakeholders.