ENA MSME 2025-01-09 14:08:38 <p><span style="font-size:14px"><strong>New Delhi, Jan 9 (KNN) </strong>Financial Services Secretary M Nagaraju announced on Thursday that the government is preparing to launch a comprehensive credit guarantee scheme for the Micro, Small and Medium Enterprises (MSME) sector, which will cover loans up to Rs 100 crore.</span></p> <p><span style="font-size:14px">Speaking at the concluding session of Grameen Bharat Mahotsav, Nagaraju revealed that existing enterprises would be eligible for loans without requiring traditional guarantees under this new initiative.</span></p> <p><span style="font-size:14px">The scheme, originally unveiled by Finance Minister Nirmala Sitharaman in the 2024-25 Budget, is awaiting Cabinet approval. According to the Finance Minister's budget announcement, the program will operate through a pooling mechanism for credit risks and will be managed by a self-financing guarantee fund.</span></p> <p><span style="font-size:14px">This initiative aims to facilitate term loans for MSMEs to purchase machinery and equipment without requiring collateral or third-party guarantees, though borrowers will need to pay both an upfront guarantee fee and an annual fee based on the declining loan balance.</span></p> <p><span style="font-size:14px">The MSME sector has demonstrated remarkable growth and resilience in recent years, with exports surging from Rs 3.95 lakh crore in 2020-21 to Rs 12.39 lakh crore in 2024-25.</span></p> <p><span style="font-size:14px">The sector currently employs 50 million people and has maintained a significant contribution to India's GDP, with its Gross Value Added (GVA) increasing from 29.7 percent in 2017-18 to 30.1 percent in 2022-23.</span></p> <p><span style="font-size:14px">Nagaraju emphasised the government's commitment to rural entrepreneurship through various lending schemes.</span></p> <p><span style="font-size:14px">He outlined four key focus areas for the country's progress including quality improvement, export linkage development, capacity building, and support mechanisms to achieve the vision of Vikshit Bharat.</span></p> <p><span style="font-size:14px">These initiatives align with the government's broader strategy to strengthen India's MSME sector and enhance its global competitiveness.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 40575 https://knnindia.co.in/news/newsdetails/msme/india-plans-new-credit-guarantee-scheme-for-msmes-covering-loans-up-to-rs-100-crore 2025-01-09 14:08:38 knnindia.co.in