1. Shah Jain & Associates
Chartered Accountants
Benefits for MSME under
Stimulus Package
“Aatmanirbhar Bharat Abhiyan”

2. Shah Jain & Associates
Chartered Accountants
Collateral-free Automatic Loans to Businesses Including
MSMEs:
Eligibility:
 Business with turnover up to Rs.100 Crores and;
 having o/s borrowings up to Rs.25 Crores
Scheme:
 Emergency credit line up to 20% of the entire outstanding as on 29.02.2020
 Loans to have 4 years’ tenure including a moratorium of 12 months on principal
repayment, Interest will have to be served during moratorium period
 No fresh collateral required for availing funding under this scheme
 Interest to be capped, i.e. maximum rate of lending to be fixed
 100% credit guarantee cover to Banks and NBFCs on principal and interest
providing funding under this scheme
 There would be no Guarantee Fee unlike CGTMSE scheme
 Last date of availing this scheme is 31st
October 2020

3. Shah Jain & Associates
Chartered Accountants
Subordinate Debt for Stressed MSMEs
Eligibility:
MSMEs which are functional and have become NPA or are under financial stress will
be eligible under this scheme.
Scheme:
 Promoters of the MSME will be given debt by Banks, which have to be infused as
equity in the MSME
 This funding will be given under CGTMSE schemes
 CGTMSE to provide partial credit guarantee to Banks with support from
Government
 It is a great opportunity for stressed and NPA MSMEs’ to revive their business

4. Shah Jain & Associates
Chartered Accountants
Equity Infusion for MSMEs through Fund of Funds
Eligibility:
MSMEs having growth potential and viability, facing shortage of equity funding.
Scheme:
 A Mother Fund will be created with a corpus of Rs.10,000 crores by Government
 This Mother Fund will be a Fund of Funds and invest further in few smaller
Daughter Funds
 The Daughter Funds will provide equity funding to MSMEs with growth potential
and viability, this will help to expand MSME size and encourage them to get listed
 It is expected to leverage Rs.50,000 crores of funds at daughter fund level
 It is a booster for those MSMEs who have high potential to grow gigantic and
support the Make in India initiative

5. Shah Jain & Associates
Chartered Accountants
NEW Definition of MSMEs
To keep in line with the vision of the scheme “Aatmanirbhar Bharat Abhiyan”, It is
proposed to change the definition of MSME by increasing the investment limits and
introduce additional turnover criteria making it a composite condition. The revised
MSME classification for “Manufacturing & Services Industry” is tabulated below:
Criteria MICRO SMALL MEDIUM
Investment and; Less than 1 Crore Less than 10
Crores
Less than 20 Crores
Annual Turnover Less than 5 Crores Less than 50
Crores
Less than 100
Crores

6. Shah Jain & Associates
Chartered Accountants
Other Benefits / Interventions for MSMEs
 Global tenders up to Rs.200 crores will be disallowed, this will help MSMEs to
avail such tenders and increase their business
 E-marketing linkage for MSMEs is planned for promotion to act as a replacement
for trade fairs and exhibitions
 Transaction based lending facilities to be provided by using Fintech and data
generated by e-market place
 MSME receivables from Government and CPSEs to be released in 45 days
The steps taken by Government work towards the dream of making India self-reliant
(Aatmanirbhar) and support make in India initiative. We are sharing this information
with our detailed understanding to spread awareness and help maximum people to
take benefit under this schemes.

7. Shah Jain & Associates
Chartered Accountants
THANK YOU
Shah Jain & Associates
Chartered Accountants
601, 6th
Floor, Rajesh Rayon Bhavan, Kalbadevi Road,
Opp. Kakkad Market,Mumbai – 400 003
CA Priyank Shah | +919773568946
CA Amit Jain | +919773398194
CA Bharat Jain | +919920496581
office@shahjain.in