The Reserve Bank Of India will now be\u00a0restructuring loans worth Rs 1 Lakh crore for MSMEs in India. The restructuring comes as a one-time scheme that allows defaulting MSMEs to revise the loan tenor and interest rate for up to Rs. 25 Crore.<\/p>\n
In the\u00a0Interim Budget 2019, MSMEs hoped for better tidings from the government. In line with the new provisions for MSMEs, the RBI is now allowing a one-time restructuring of existing MSME debt.<\/p>\n
If you have a bad loan of up to Rs. 25 crores, you can now revise the loan tenor and the interest rate.<\/strong>\u00a0The restructuring could benefit 700,000 MSMEs in India that are currently defaulting on their loans.<\/p>\n Debt restructuring can help you overhaul the financial situation of your small business. Here are some benefits of restructuring a loan:<\/p>\n Handle multiple payments easily:\u00a0<\/strong><\/p>\n Paying off more than one loan for your business? Consolidating your debts could help you pay off your debts faster. It could help you bring down the interest rate and also extend the time period of your loan so you can pay it back without breaking a sweat.<\/p>\n Plan your finances better:<\/strong><\/p>\n Restructuring your debt can also help you plan ahead for your company’s finances. Understanding how much money your company needs and making monetary forecasts becomes easier when you don’t have a huge business loan<\/span><\/a><\/strong> to worry about.<\/p>\n More working capital for you!<\/strong><\/p>\nHow will the scheme help MSMEs?<\/h2>\n