NEW DELHI: The government is considering a proposal to provide guarantee to businesses, especially micro, small and medium enterprises, for accessing additional working capital at a time when cash flow is severely impacted due to the Covid-19 lockdown.
While discussions have taken place at various levels in the government, a final decision is expected to be taken soon, sources told TOI. Banks are already providing 10% additional working capital to take care of regular expenses, such as salary payments and electricity bills, and a further enhancement in the limit through some sort of credit guarantee is proposed. The finance ministry is monitoring loan approvals and disbursement almost daily to ensure that fund flow for businesses is not a problem.
“It may be another 15% above the existing li
