Schedule a Call Back
GOI to launch credit guarantee scheme for MSMEs covering loans upto Rs 1 billion
Industry News- Jan 13,25
The government is also focusing on promoting rural entrepreneurship, with an emphasis on enhancing quality, building export linkages, capacity development, and achieving the vision of ‘Viksit Bharat’.
The Centre is set to introduce a new credit guarantee scheme for Micro, Small, and Medium Enterprises (MSMEs), enabling loans of up to Rs 1 billion without collateral. Announced in the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman, the scheme aims to facilitate term loans for purchasing machinery and equipment, fostering growth in the MSME sector.
Financial Services Secretary M Nagaraju highlighted that the scheme, expected to be placed before the Union Cabinet for approval, will operate by pooling credit risks of MSMEs. A dedicated self-financing guarantee fund will provide guarantee cover up to Rs 1 billion for eligible borrowers. Applicants will be required to pay an upfront guarantee fee and an annual fee on the reducing loan balance.
The MSME sector plays a vital role in India's economy, employing over 50 million people and contributing significantly to GDP. Gross Value Added (GVA) from MSMEs rose from 29.7% in 2017-18 to 30.1% in 2022-23. Additionally, exports from MSMEs have seen a substantial increase, growing from Rs 3.95 trillion in 2020-21 to Rs 12.39 trillion in 2024-25, underscoring the sector's role in global trade.
The government is also focusing on promoting rural entrepreneurship, with an emphasis on enhancing quality, building export linkages, capacity development, and achieving the vision of ‘Viksit Bharat’. As India progresses, schemes like this aim to bolster the resilience and adaptability of MSMEs, driving economic growth and global competitiveness.
(New Indian Express)
Related Stories
Auto & Auto Components
EV transition and tariff wars redefine India’s auto components play
India’s auto component industry is poised to hit $ 145 billion by FY30 from $ 80 billion in FY25. Yet high US tariff, EV transition and heavy reliance on imports from China expose vulnerabilities,..
Read moreAuto & Auto Components
EV shift, trade pressures threaten India’s auto components: Tushar Bhaskar
India’s auto component industry faces mounting risks as EV-led technology shifts, trade pressures, and critical material dependence threaten its global competitiveness.
Read morePolicy Regulation
Why is Workmen Compensation Insurance Essential for Both Employers and Employees?
Workplace risks are an unavoidable reality across India’s diverse industries like construction, manufacturing, logistics, housekeeping, hospitality and more. Even with strong safety protocols, acc..
Read moreRelated Products
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
