The Government announced the creation of ‘Distressed Assets Fund- – Subordinate Debt for Stressed MSMEs’ on May 13, 2020, under the Atma Nirbhar Bharat Package.
Accordingly, a scheme viz. ‘Credit Guarantee Scheme for Subordinate Debt’ was approved by the Government on June 1, 2020 and the scheme was launched on June 24, 2020, to provide credit facility through lending institutions to the promoters of stressed MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the Lending institutions. This scheme was to remain in operation till March 31, 2021.
In order to keep the avenues of assistance to stressed MSME Units open, the Government had earlier decided to extend this scheme for six months from March 31, 2021 to September 30, 2021, the Ministry of Micro,Small & Medium Enterprises.
On the basis of the requests received from the stakeholders of the scheme, the Government has decided to further extend it by a period of another six months beyond September 30, 2021. The scheme will now remain operational till March 31, 2022.
Source : IIFL
