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Finance Minister Nirmala Sitharaman has included a number of significant initiatives in the Budget 2024 to help the micro, small, and medium-sized company (MSME) sector expand and become more globally competitive. Seeing how important MSMEs are to the economy, the government has launched programs to help them financially and make it easier for them to get loans.
The launch of a Rs 100 crore Credit Guarantee plan for MSMEs is one of the biggest. With the help of this program, term loans for the purchase of machinery and equipment will be available without the need for collateral or third-party guarantees. "MSMEs and manufacturing receive significant emphasis in this budget. MSMEs will receive Rs 100 crore from a different guarantee fund, according to Sitharaman.
विनिर्माण एवं सेवाएं
— BJP (@BJP4India) July 23, 2024
MSME
MSME सेक्टर को दबाव के दौरान बैंक ऋण आसानी से मिलता रहे इसके लिए एक नई व्यवस्था की घोषणा की गई
मुद्रा लोन की सीमा को 10 लाख से 20 लाख तक बढ़ाया जाएगा
- वित्त मंत्री @nsitharaman#BudgetForViksitBharat pic.twitter.com/N01i46QSz9
Public sector banks will now develop their internal capacity to evaluate small businesses for credit, doing away with the need for outside assessment, to significantly simplify the credit assessment process for MSMEs. Even when MSMEs are in the Special Mention Account (SMA) stage, this new method is intended to guarantee the continuation of bank credit to them. A government-sponsored fund guarantee will ensure credit availability, giving lenders an extra degree of protection.
The doubling of the MUDRA loan limit from Rs 10 lakh to Rs 20 lakh in the Tarun category is another notable modification. This increase is anticipated to give MSMEs wishing to engage in new projects or grow existing operations significant financial support.
Additionally, the Trade Receivables Discounting System's (TReDS) platform's required onboarding threshold for buyers has been proposed by the government to be lowered from
Rs 500 crore to Rs 250 crore. By making it simpler to get financing and make on-time payments, this modification seeks to improve MSMEs' liquidity and cash flow.
PM @NarendraModi Ji's #BudgetForViksitBharat brings a significant boost to MSMEs!
— Tejasvi Surya (@Tejasvi_Surya) July 23, 2024
- MUDRA loan limit increased from ₹10 lakh to ₹20 lakh for previous borrowers & those who have successfully repaid
- Turnover threshold for MSME buyers on TReDS platform reduced from ₹500 crore… pic.twitter.com/uyqBrFLiol
The government's dedication to creating a supportive atmosphere for the MSME sector, which is the foundation of the Indian economy, is shown in these initiatives. The new measures are intended to improve the operational efficiency and worldwide competitiveness of MSMEs by lowering financial challenges, increasing financing availability, and guaranteeing timely payments.
The initiatives made by Finance Minister Sitharaman are an important step in addressing the difficulties MSMEs face and guaranteeing their long-term growth. The government wants to empower small businesses, create jobs, and propel the nation's economy forward with these initiatives.
