Govt support extended to MSME during COVID-19

The coronavirus pandemic has had an adverse impact on the global economy. However, the biggest sufferers are the owners of micro, small, and medium businesses and people associated with the enterprises. These businesses are basically the support structure and the nurturer of the middle scale economy of a country. Their total contribution to the overall economy of a country, while often underestimated, absolutely indispensable.

How has the global economy been impacted by the COVID-19 pandemic?

Currently, the COVID-19 pandemic has disrupted the cogs and wheels of the economy. Amidst the wobbly economy the micro, small and medium businesses have been hit the hardest. The losses incurred due to the country-wide lockdown have become a heavy burden on them and they have been trying ceaselessly to overcome the losses. With such businesses going bankrupt and closing their doors one after the other, the global economic situation might become precarious.

What are the schemes provided to the MSME during COVID-19?

In India, the Ministry of Micro, Small and Medium Enterprises has decided to review and revise some of the schemes to support these businesses better.

Provision of loans: The Government has decided to offer loans to the MSME at a negligible rate of interest. The loan can be paid back over a longer duration. Due to the prolonged lockdown, the MSME owners might find it difficult to procure ready cash to keep up the regular expenses. In such a scenario, they will, most definitely, need to fall back on the government for support. This scheme will help a lot of people in business or businessmen to pull their businesses out of the lurch.
Loan limit increased: Propositions have been made to increase the loan limit. Since the chances of earning profits during the lockdown are close to zero with the extra burden of regular expenditure, the regular businessman might find it impossible to make his ends meet. This increase in the loan limit will ease things for the owners of MSME. However, not every business owner will be eligible. The eligibility criteria are very strict, and only the businesses which have suffered acutely during the lockdown are eligible.
Storage by RBI: RBI has offered to set aside a considerable portion of the country's economic storage for the MSME. This money will be invested in rebuilding and reorganizing the MSME.

What benefits can the owners of MSME look forward to?

The ministry has been racking their brains to come up with suitable measures to support the struggling MSME. Numerous meetings have been held regarding the future of the micro, small and medium businesses and how to rescue them. The economists have been trying to devise plans and strategies to help out the owners of MSME in their struggle for survival. Once the lockdown is lifted the government will have to sketch out other plans which will help these businesses to thrive.

The importance of micro, small, and medium enterprises cannot be emphasized enough. They are the arteries and the veins of our economy; playing a crucial role in the demand and supply chain. The economy thrives on them, and the Government has been mindful of that. Therefore, many other benefits and schemes are being sketched out to help the businessmen as much as possible.

What to expect next and how to apply?

Apart from these schemes and benefits, the owners of the MSME should look forward to more support from the government as the country reaches the post-lockdown reopening point. Since the consumers are largely dependent on these businesses for their needs and requirements; the government has to be especially mindful of the survival of the MSME. The revival of our country's economy will be impossible if these businesses fail to thrive.

If you want to apply for MSME loan, now is a perfect time. The process is very simple and involves nothing more than filling up a simple MSME form on our website and we can help you with the rest of your process.