MSME Investment & Turnover Limits Revised To Boost Access To Capital & Technology: MoS Karandlaje

New Delhi, Jan 30 (KNN) Minister of State for Micro, Small and Medium Enterprises (MSMEs) Shobha Karandlaje on Thursday said that the government has revised the investment and turnover limits for classifying MSMEs in order to help firms achieve higher efficiency, adopt advanced technologies, access capital more easily, and strengthen global competitiveness.

The Minister said this in a written reply to a question in Parliament.

The revised framework ensures continued support for MSMEs through Priority Sector Lending, public procurement preferences, and various government schemes, while preventing exclusion or monopolisation by larger enterprises.

Timely Credit Decisions and Enhanced Guarantees

The Department of Financial Services (DFS), citing the Reserve Bank of India (RBI), stated that for loans up to Rs 25 lakh to micro and small enterprises, banks must make credit decisions within 14 working days. 

For larger loans, timelines follow board-approved sanction norms. Banks are required to prominently display credit-related information, including timelines and document checklists, on their websites.

Under the Credit Guarantee Scheme (CGS), loan applications and disbursements for Micro and Small Enterprises (MSEs) are monitored quarterly by the Empowered Committee on MSMEs, chaired by the RBI, and the State Level Bankers’ Committee (SLBC). 

From April 1, 2025, credit guarantee cover for MSEs has been enhanced from Rs 5 crore to Rs 10 crore. In FY 2025-26 (till December 31, 2025), 1,778 guarantees amounting to Rs 12,498 crore have been approved for MSEs in the Rs 5–10 crore slab.

Credit Cards for Micro Enterprises

DFS highlighted a new scheme providing credit cards to Udyam-registered micro enterprises. The scheme offers faster access to working capital and promotes digital transactions, enabling better assessment of future credit needs and monitoring of fund utilisation. 

All Udyam-registered micro enterprises requiring working capital finance are eligible.

Support for Startups and Women Entrepreneurs

The government’s Fund of Funds for Startups (FFS), operationalised by SIDBI, continues to catalyse venture capital investments. SEBI-registered Alternative Investment Funds (AIFs) receiving FFS support must invest at least twice the committed amount in startups.

As of December 31, 2025, AIFs have invested approximately Rs 25,547.98 crore in 1,371 startups nationwide, including Rs 3,802.86 crore in 205 women-led startups.

(KNN Bureau)