On June 2, 2020, the Public Sector Banks sanctioned collateral free loans that were worth Rs 200 crores. The complete Rs 200 crore sanction was done in a single day.
The PSBs are set to sanction Rs 3,200 crores under Atma Nirbhar Bharat Abhiyan. This will benefit MSMEs (Micro, Small and Medium Enterprises) that are located in more than 3,000 TIER-2 towns. These loans will help MSMEs meet their expenses towards rent, restocking of goods and payment of salaries.
Atma Nirbhar Bharat Abhiyan
The Union Finance Minister Nirmala Sitaraman while announcing the economic package of Rs 20 lakh crore under the Atma Nirbhar Bharat Abhiyan Scheme, said that collateral free loans with one-year moratorium will be provisioned. These loans are those that are now being provided by the Public Sector Banks. (Moratorium is the period during which the borrower is not obligates to make any payment).
Under the scheme, for the other stressed sectors up to 25 crores of rupees are availed as additional 20% of outstanding loans.