Union Budget: Credit guarantee scheme for MSMEs to access term loans without collateral
Public sector banks to build in-house capability for credit assessment of MSMEs
The government will come out with a credit guarantee scheme for MSMEs to facilitate term loans without collateral or third-party guarantee, Finance Minister Nirmala Sitharaman said on Tuesday (July 23).
Presenting her seventh straight Union Budget, she also said that public sector banks to build in-house capability for credit assessment of MSMEs.
As part of a slew of measures to boost the sector, the government will reduce the turnover threshold of MSME buyers for mandatory onboarding on TReDs platform from ₹500 crore to ₹250 crore.
TReDS is an online platform to help MSMEs (Micro, Small and Medium Enterprises).
Among other steps, SIDBI will open 24 new branches to serve MSMEs clusters.
In the Budget, Sitharaman said ₹2.66 lakh crore is being provided for rural development.
Further, the government will launch saturation drive under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN).
(With agency inputs)