Finance Minister Nirmala Sitharaman, in her budget speech, announced a credit guarantee scheme for MSMEs to facilitate term loans without collateral or third-party guarantees.
The FM introduced a new MSME Guarantee Plan to enable loans of up to ?100 crore. For this, Sitharaman mentioned that PSU banks will create an internal assessment model. The MSME Credit Guarantee Scheme will provide collateral-free loans, the FM said.
The FM also stated that this new mechanism will facilitate bank credit to MSMEs while they are in the SMA (Special Mention Account) stage. In the 2024 budget, the government has increased the limit for Mudra loans from ?10 lakh to ?20 lakh.
The FM announced the establishment of new export hubs under a new regulatory body. Additionally, e-commerce hubs will be set up to facilitate trade and export-related services under one roof.
On Tuesday, the FM presented the Budget for 2024-25, marking her 7th consecutive presentation and surpassing the record of former Prime Minister Morarji Desai.
This is the first Budget during Prime Minister Narendra Modi’s third term in office.
The people of India have reinforced their faith in the government led by Modi and re-elected it for a third term, she said while presenting the Budget in the Lok Sabha.
India’s economic growth continues to shine while the global economy remains in the grip of policy uncertainty, Sitharaman added.
The country’s inflation remains stable and is moving towards 4 percent, with core inflation standing at 3.1 percent.
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Union Budget 2024: FM unveils 100cr credit guarantee scheme for MSMEs; raises Mudra loan limits
