Finance Minister Nirmala Sitharaman presented her 7th budget in the Lok Sabha today, which is also the first full budget of the Modi Government 3.0.
The budget includes several major announcements for small and medium industries. The Finance Minister announced a financial package for MSMEs in the budget.
Nirmala Sitharaman stated that a credit guarantee scheme will be introduced for MSMEs.
The Mudra loan limit has been increased from ₹10 lakh to ₹20 lakh. The new scheme will provide MSMEs with loans of up to ₹100 crore.
The Finance Minister also announced a new system to make it easier for the MSME sector to obtain bank loans.
Additionally, the business limit for mandatory inclusion on the traders’ platform will be reduced from ₹500 crore to ₹250 crore.
The government will support the setup of 50 multi-product food irradiation units in the MSME sector. E-commerce export centers will be established in public-private partnership (PPP) mode to help traditional artisans sell their products globally.
Mudra scheme limit increased
The PM Mudra Yojana offers loans in three categories: Shishu, Kishor, and Tarun. The budget has increased the loan amount under this scheme to ₹20 lakh.
Previously, the loan amount was up to ₹10 lakh. This loan is easily available at affordable interest rates, and timely repayment may lead to an interest rate waiver.
Loan Up to ₹100 Crore for MSMEs
Nirmala Sitharaman announced a loan of up to ₹100 crore for small and cottage industries in the 2024-25 budget.
The Modi government introduced a credit guarantee scheme for small and cottage industries, offering a guarantee of up to ₹100 crore for MSMEs.
Under this credit guarantee scheme, loans can be obtained without collateral or a third-party guarantee.
Nirmala Sitharaman also mentioned that term loans will be available for purchasing machinery.
Eligibility for Mudra Loan Benefits
The Finance Minister announced that individuals who have repaid their old loans will be eligible for double the loan amount. Only those who have cleared their previous loans will benefit from this scheme.
