India unveils $40 billion credit line for small businesses
Under the plan, the government will provide a credit guarantee to businesses to avail collateral-free loans from banks
India's Finance Minister Nirmala Sitharaman attends a joint news conference with U.S. Treasury Secretary Steven Mnuchin in New Delhi, November 1, 2019. REUTERS/Adnan Abidi/Files
India will offer bank loans amounting to 3 trillion rupees ($39.85 billion) to small businesses, Finance Minister Nirmala Sitharaman said on Wednesday, as part of measures to combat the damage caused by the coronavirus outbreak.
Under the plan, the government will provide a credit guarantee to businesses to avail collateral-free loans from banks, aiming to help 4.5 million businesses by October 2020, she said.
The allocation is part of a 20 trillion rupee ($266 billion) fiscal and monetary package to support the economy that has been battered by a weeks-long lockdown.
India has more than 74,000 cases among its 1.3 billion population and is set to surpass China, the origin of the outbreak, in next few days.
