Budget 2024: FM boost for MSMEs

Finance Minister Nirmala Sitharaman has announced financial and regulatory changes aimed at the growth of micro, small, and medium enterprises (MSMEs). The new schemes and regulations include a credit guarantee scheme, new assessment models, ecommerce facilitation hubs, and quality testing centres.

In the credit guarantee scheme, MSMEs can get term loans for investments in machinery without any collateral or third-party guarantee. The finance minister said the scheme will operate on the pooling of credit risks of such MSMEs. A separately constituted self-financing guarantee fund will provide each applicant with a guarantee covering up to Rs 100 crore, while the loan amount may be larger.