Union Budget 2024: Nirmala Sitharaman announces MSME credit support, MUDRA loan scheme doubled to Rs 20 lakh

The Centre will also promote investment-ready industrial parks in 100 cities

July 23, 2024 12:13 IST

In the previous year's budget, the government included a new provision under Section 43B of the Income Tax Act to tackle the issue of postponed payments that MSMEs encounter nationwide (Photo: Freepik)

The government would lower the turnover requirement of MSME buyers for mandatory onboarding on TReDs platform from Rs 500 crore to Rs 250 crore as part of a series of efforts to stimulate the industry (Photo: Freepik)

Finance Minister Nirmala Sitharaman on Tuesday said the government will launch a credit guarantee programme for MSMEs enabling term loans without the need for collateral or a third-party guarantee. Sitharaman announced this during her Union Budget 2024 presentation in the Parliament. Sitharaman further said that loan limit under the MUDRA scheme will be doubled to Rs 20 lakh.

Presenting the Budget for 2024-25 in the Lok Sabha, she said the government will launch the scheme to provide internship opportunities to 1 crore youth in top 500 companies over the next five years. Further, the Centre will also promote investment-ready industrial parks in 100 cities, the finance minister added. The government will facilitate dormitory-type rental housing for industrial workers in public-private partnership (PPP) mode.

As she unveiled the Union Budget for the seventh time in a row, she added that public sector banks should develop internal capacity for MSMEs’ loan evaluation. FM announced a credit guarantee scheme for MSMEs to facilitate term loans without collateral or third party guarantee.

An online resource for MSMEs (Micro, Small and Medium Enterprises) is called TReDS.

To support MSMEs clusters, SIDBI will open 24 new branches. Public sector banks will build in-house capability for credit assessment of MSMEs.

Moreover, the budget focuses on employment, skilling, MSME and middle class. The government will also develop digital public infrastructure applications in seven areas including credit and MSME service delivery.

Sitharaman stated that Rs 2.66 lakh crore would be allocated for rural development in the budget. Additionally, under the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN), the government will begin a saturation push.

This article was first uploaded on July twenty-three, twenty twenty-four, at thirteen minutes past twelve in the night.