The Government announced creation of ‘Distressed Assets Fund – Subordinate Debt for Stressed MSMEs’ on May 13, 2020, under the Aatma Nirbhar Bharat Package.
Accordingly, a scheme viz. ‘Credit Guarantee Scheme for Subordinate Debt’ was approved by the Government on June 01, 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. Initially the scheme was upto March 31, 2021.
In order to keep the avenues of assistance to stressed MSME Units open, the Government had earlier extended this scheme upto March 31, 2022.
Now, on the basis of the requests received from the stakeholders of the scheme, the Government has decided to further extend this scheme till March 31, 2023.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1805864