PM Modi's financial sops in the New Year speech- Highlights

INDORE, India - Jan. 2, 2017 - PRLog -- Indian Prime Minister Narendra Modi, on Saturday, announced a range of incentives to the poor, farmers, women and small enterprises in a special New Year's address. The incentives come well before the government's annual budget, to be expected in February, and before key a election in the northern state of U.P in early 2017.

Key highlights:

* In housing Sector, the number of houses being built for the poor, under the PMAY (Pradhan Mantri Awaas Yojana) programme in rural areas, to be raised by 33%.

* Loans of up to 9,00,000 rupees taken out in 2017 to receive interest discount of 4%.

* Loans of up to Rs. 12,00,000 taken out in 2017 to get interest rebate of 3%.

* Loans of up to Rs. 2, 00,000 taken in 2017 for new housing, or maintenance of housing in rural areas, to get an interest rebate of 3%.

* For Farmers, Government to bear 60 days interest on select farm loans.

* Government to add 200 billion rupees to the 210 billion rupee fund generated by NABARD (National Bank for Agricultural & Rural Development) in November. Government to bear the loss that NABARD bears by giving loans to Co-operative banks and societies at low interest rates.

* Government to issue RuPay debit cards within 3 months to 30 million farmers who have Kisan Credit Cards.

*In Small & Medium enterprises, Government to double its loan guarantee scheme to small businesses to 20 million rupees.

* Banks and NBFCs will not charge high interest on these loans, since the Government of India is bearing the cost of underwriting them.

* Asks banks to raise the credit limit to 25% from 20% of turnover for small businesses. Also, Banks asked to increase working capital loans to 30% from 20% of sales for enterprises that transact digitally.

* Reduces tax liability for digital transactions for small businesses with turnover of up to 20 million rupees to 6%.

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