NEW DELHI : As part of a stimulus package for the coronavirus-hit economy, the government is working on a credit guarantee scheme to enable banks to provide additional 10-15% working capital to MSMEs for payment of wages, people familiar with the matter said.

Currently, banks are offering an extra line of credit of 10% based on working capital limits, which the government intends to increase further.

Since units are closed due to lockdown and there has been no operation for the past two months, most micro, small and medium enterprises (MSMEs) do not have money for paying wages and financial assistance for them is under consideration of the government, the sources said.

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