20 Lakh crore Relife package Announced By Finance minister Nirmala sitaraman to Raise the Economic activity of India.

Narendra Modi planned a stimulus package that will be given in India and Nirmala sitaraman Spoke a lot of detail about it. This stimulus package is 20 lakh crore and which is the equal of 10% of India’s GDP.
Govt has already taken 2 steps of these for the PRADHAN MANTRI GARIV KALYAN package. under which 1.70 lakh crore amount has introduced. And 2nd one is RBI stimulated different steps to manage the liquidity for economic balance.
According to Nirmala Sitaraman following sectors will be highly impacted are:-
  • Cottage industry
  • MSMEs sectors
  • Laborious
  • Middle class
After Garib Kalyan package  RBI regulates several steps to balance the liquidity of the Indian economy.
Measured by RBI-

The reduction of cash reserve ratio(CRR) has resulted in liquidity enhancement of 1,37,000 cr.
Rbi has reduced the cash reserve ratio for liquidity will be
1,37,000 crores to improve the liquidity of India.


Special liquidity facility (SLF) of 50,000 cr for Mutual found to alleviate intensified liquidity pressure.

50,000 crore given to Mutual found to maintain their liquidity. In
these days Mutual found facing a lot of liquidity problem and some
the mutual found scheme is closed to raise the liquidity govt has introduced
a package for them.

A moratorium of three months on payments of installment and payment of interest on Working capital facilities respects of all term loans.
You can catch a moratorium over the Term loan which allows 3 months Free EMI and can take the benefit from it. 
Let’s explain the stimulus packages announced by Nirmala which Focused on MSMEs sectors. 
MSME stands for Micro, Small, Medium, and Enterprise sectors.
Govt has changed some bit on MSMEs sectors Classification there are 3 segment Micro, Small, and Medium.
 Investment from Plant and industry Machinery. 
Manufacturing companies 
Micro companies should invest less than 25 lakh and small is less than Rs5 cr, Medium should less than Rs 10cr.
In service enterprise,
 The investment amount should less than rs 10 lakh Small be invested less than 2 cr, the Medium should less than 5 cr.
Another MSME classification is Revised contains investment & annual Turnover.
Here the Manufacturing and services enterprise are combined.
In Micro companies, the investment should less than Rs10 cr and the annual turnover of less than Rs5 cr.
In Small companies investment should less than Rs10 cr and the annual turnover of less than Rs50 cr.
If we talking about Medium companies investment should less than Rs20 cr and an annual turnover of 100 cr.
The biggest announcement delivered by the government is 3 lakh crore collateral-free automatic loan for Bussiness initiating MSMEs should be given.
Let’s open the detail for their investment and loans and how companies and MSME will be eligible and profitable.


 Relife package for MSME sectors 

Emergency credit line to businesses/MSMEs from Bank and NBMCs up to 20% off entire outstanding credit as on 29.2. 2020.
The person who already have any credit loan They can take 20%
of Emergency credit loan of the previous loan.

Borrowers with up toRs25 crore outstanding and hundred crores turn over for eligible


Loans have to 4-year tenure with a moratorium of 12 months on principal repayment.


Interest to be capped
the interest rate should be capped and No need to pay extra fees.
No guarantee, no fresh collateral


50,000 cr Equity infused for MSMEs through found of found & found of Found with a corpus of 10,000 crores will set up
Several companies facing trouble for taking debt. So govt has introduced a new scheme for them. Under this scheme, The govt will subsidize 50,000 cr in MSMEs sectors and a corpus will add about 10,000 cr. It will introduce Only potential MSMEs sectors who have great possibilities for growth in the future. 
Govt introduced 30,000     crores special liquidity package for NBMCs sectors.
 NBMC sector Faces the biggest loss when they invest and didn't return. So Rs45,000 partial credit guarantee scheme 2.0 will initiate for NBMCs.