MSME credit scheme set to be placed before cabinet soon

The government is set to launch the proposed credit guarantee scheme for the MSME sector, which will cover loans up to Rs 100 crore, financial services secretary M Nagaraju said Thursday.

"We are likely to come up with a scheme, which was announced by the finance minister in her last budget, that could provide loans up to Rs 100 crore without guarantee, if they are already having the enterprise," he said at the concluding day of Grameen Bharat Mahotsav.

The scheme is expected to be placed before the Union Cabinet soon for approval.

Finance minister Nirmala Sitharaman in her July budget speech had stated that to facilitate term loans to MSMEs for purchase of machinery and equipment without collateral or third-party guarantee, a credit guarantee scheme will be introduced.

www.economictimes.indiatimes.com, dt. 10-01-2025