Finance Minister Nirmala Sitharaman proposed in Budget 2024 a big push for micro, small, and medium enterprises (MSMEs), including an increased limit on Mudra loans from Rs 10 lakh to Rs 20 lakh, aiming to strengthen the start-up system in India.
The limit has been increased for those MSME owners who have availed of and successfully repaid the loans.
Sitharaman announced a new mechanism for the continuation of bank credit to MSMEs during their stress period. MSMEs can take out loans without being required to provide any collateral or third-party guarantee.
For MSMEs in the manufacturing sector, she announced a credit guarantee scheme worth Rs 100 crore.
The centre proposed to reduce the turnover threshold of MSME buyers for mandatory onboarding on TReDs, an online platform to help MSMEs, from Rs 500 crore to Rs 250 crore.
