Finance Minister Nirmala Sitharaman has announced that the government will launch a revamped credit guarantee scheme for Micro, Small and Medium Enterprises (MSMEs) starting April 1, 2023. The scheme will be funded by an infusion of INR 90B into the corpus, which will enable the provision of an additional collateral-free credit of INR 2,000B to MSMEs.
The objective of this scheme is to provide financial support to MSMEs and help them overcome the challenges posed by the pandemic. By providing additional collateral-free credit, the government aims to enable MSMEs to invest in their businesses, hire new employees, and grow their operations.
The credit guarantee scheme is expected to play a critical role in supporting MSMEs and helping them to recover from the impact of the pandemic.
