Government mulls credit guarantee scheme

Owing to the heavily hit economy due to the COVID pandemic, GOI has taken a step to handle the crisis. The government is working on a credit guarantee scheme as a part of the stimulus package, to help banks to provide additional 10-15% working capital to Micro, Small, and Medium Enterprises (MSMEs) for payment of wages. The banks are offering an extra 10% credit on working capital limits which the government plans to increase. PTI reports state that most MSMEs are facing insufficient funds to pay wages to their workers.The government is looking into the matter considering financial assistance for them.