Finance Minister Announces New Credit Guarantee Scheme for MSMEs in Union Budget 2024-25

New Delhi, Jul 23 (KNN) In her 2024 Union Budget speech, Finance Minister Nirmala Sitharaman unveiled a new initiative aimed at boosting India's Micro, Small, and Medium Enterprises (MSMEs) sector.

The highlight of this announcement is a credit guarantee scheme designed to facilitate term loans for MSMEs.

The scheme will feature a self-financing guarantee fund to support the initiative, offering coverage of up to Rs 100 crore for each applicant. Notably, the loan amounts may exceed this guarantee cover.

Operating by mitigating credit risks associated with MSME lending, this move is expected to enhance financial support for small businesses, which are crucial to India's economic growth.

Industry experts anticipate that this scheme will improve MSMEs' access to credit, potentially stimulating expansion and job creation in this vital sector.

(KNN Bureau)