PM Modi's 10 Key Economic Announcements In New Year Address
Prime Minister Narendra Modi in his New Year's eve address announced some key measures to ease the hardship of small industries and farmers who have been hit hard by demonetisation. The Prime Minister also announced new housing schemes for the urban and rural poor.
Finance Minister Arun Jaitley said the PM's announcements will enhance economic activities.
Here are the 10 important announcements by PM Modi:
1) Micro and small enterprises will now get loans up to Rs 2 crore under the government's credit guarantee scheme. The earlier limit was Rs 1 crore. Under the credit guarantee scheme, banks extend collateral-free credit to the micro and small enterprise (MSME) sector. The guarantee is provided by the government.
2) Interest will be waived for farm loans taken from district cooperate banks and central government-owned banks for the first 60 days.
3) The government will provide Rs 20,000 crore to NABARD fund to give loans to farmers.
4) Banks have been asked to raise cash credit limit to small business to 25 per cent from 20 per cent.
5) Banks have also been asked to increase working capital loans from 20 per cent of turnover to 30 per cent for enterprises that transact digitally.
6) The government would build 33 per cent more houses in villages under the 'Pradhan Mantri Grameen Awas Yojana'.
7) In 2017, villagers who want to renovate/extend their homes will get a 3 per cent subsidy/rebate on interest rates for loans up to Rs 2 lakh.
8) The urban poor will get 4 per cent rebate on home loans of up to Rs 9 lakh. Loans up to Rs 12 lakh will get an interest rate rebate of 3 per cent.
9) 3 crore farmers who have Kisan Credit Cards, will be given RuPay debit cards within three months. RuPay debit cards will do away with the need for farmers to go to the banks to withdraw money.
10) Senior citizens will now get an assured 8 per cent interest on their deposits up to Rs. 7.5 lakh for 10 years. The interest will be given on a monthly basis.
