The scheme will cover only existing borrowers with outstanding credit limit of upto ₹25 crore as on 29 February 2020 and having a turnover of ₹100 crore Finance Ministry has sent a draft circular to banks detailing the implementation of the collateral free automatic loans for businesses including micro, small and medium enterprises, according to a senior banker aware of the matter.
The scheme was announced as part of the ₹20 trillion Atmanirbhar Bharat Abhiyan package to kickstart the economy following the covid-19-induced nationwide lockdown.
According to the draft circular received by banks, the ₹3 lakh crore scheme will include ₹2.8 lakh crore which will be available as automatic loans and the remaining ₹20,000 crore which will be made