On Wednesday, Finance Minister Nirmala Sitharaman announced a slew of measures to help out Micro, Small and Medium Enterprizes. Here we bring you some of the key highlights.

MSMEs will receive a collateral-free loan up to Rs 3 lakh crore. Those MSMEs with Rs 25 Cr outstanding loan or Rs 100 Cr turnover will be eligible to avail of this facility. The government will guarantee 100 percent credit.

The measures will benefit 45 lakh MSMEs in the country. Loans will be of 4-year tenure. A 12-month moratorium on principal payment will be implemented. Interest will be capped.

The FM said that a Rs 20,000 Cr subordinate debt programme for stressed MSMEs will be in place. The measure will benefit two lakh MSMEs. The Centre will provide Rs 4000 Cr to the Credit Guarantee Fund, which in turn will provide the debt.

A fund of funds with a corpus of Rs 50,000 Cr for equity infusion in MSMEs will be brought into existence.

E-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions.

Change of definition:

For the first time in several years, a change in the definition of MSMEs has been announced.

Micro enterprizes: Investment up to Rs 1 Cr or turnover up to Rs 5 Cr.
Small enterprizes: Investment up to Rs 10 Cr or turnover up to Rs 50 Cr.
Medium enterprizes: Investment up to Rs 20 Cr or turnover up to Rs 100 Cr.