The Federation of Indian Micro and Small & Medium Enterprises (FISME) has termed the Union Budget as functional and one that will give a boost to Micro, Small, and Medium Enterprises (MSMEs).

FISME welcomed the Credit Guarantee Scheme for the purchase of machinery up to Rs. 100 crore. Instead of going through a complicated project assessment process, businesses can now seek loans under the scheme to buy machinery without any collateral or third-party guarantee. This will significantly boost technology upgradation.

The announcement to do away with the practice of bank loan rating through credit rating agencies was also well-received. The Finance Minister has asked banks to develop their own risk assessment models, a demand continuously raised by FISME. This will end the expenses and harassment MSMEs faced at the hands of rating agencies.

FISME welcomed the announcement of a fund to help stressed MSMEs red-flagged under the ‘special mention account’ (SMA) category. However, they termed the measure a "halfway house" as the major issue of a lack of empowered officials at branch levels remains unaddressed.

Read More: https://knnindia.co.in/news/newsdetails/MSME//budget-prioritizes-stability-with-msme-boost-fisme