New Credit Guarantee Scheme to Boost MSME Growth

Union Finance Minister Nirmala Sitharaman announced that the Rs 100 crore credit guarantee scheme for MSMEs will soon be presented to the Union Cabinet.

Union Finance Minister Nirmala Sitharaman has revealed that the Rs 100 crore credit guarantee scheme for MSMEs, announced in this year's budget, is set to be presented to the Union Cabinet for approval.

Sitharaman highlighted the scheme's importance, noting its potential to provide much-needed financial support to MSMEs during challenging times. She emphasized the removal of third-party guarantees for loans, stating that public sector banks will develop a new credit assessment model.

SIDBI's pivotal role in understanding and meeting MSME credit needs was also underscored, along with the directive for Regional Rural Banks to enhance credit disbursement in allied agriculture and MSME sectors through tailored financial strategies and digital innovations.

(With inputs from agencies.)